One of the rightfully so assumptions that employees make with their pay, is that their tax code that collects the amount of tax from their pay, is correct.

However, when you start earning over £100,000, this can no longer be relied upon.

I recently informed a client that she had been on the wrong tax code for the last two tax years. As a result of her earnings, she had gone into the next tax bracket and her tax code had not been adjusted for this.

She now needs to find almost £8,000 to pay back to HMRC.

Contrary to belief, it is your responsibility as an employee to make sure HMRC is using the correct code for your salary. It is not your employers responsibility, it is up to you to make sure you are on the correct tax code for your earnings. To find out more about how tax codes are created, see here Tax codes: Overview – GOV.UK (www.gov.uk)

We carry out a complex PAYE tax code review for £150 + VAT to ensure you are on the correct tax code as a higher earner. We also correct your tax code as a result of the review and ensure any unpaid tax is calculated and arranged to be paid to HMRC based on what suits you (either paying it upfront or paying it in instalments).

If you want the peace of mind that you are paying the correct amount of tax and that you don’t owe thousands to HMRC, get in touch with us to organise a call with one of our team.