One of the most popular misunderstandings about receiving a payslip, is the assumption your tax code is automatically correct.

In the majority straight forward circumstances, it will be.

Employed in one job from 6th of April until the 5th of April the following year and earning under £100,000? You will likely be on a 1257L tax code which allocates all of the personal tax allowance to you.

However, there are a number of reason as to why your tax code will not be correct including

• Being paid a bonus that moved your overall income into the next tax bracket and your tax code not being adjusted in time by HMRC
• Receiving private medical insurance benefits that are not included in your payroll (invoiced via a P11D)
• Changing jobs and your new employer not incorporating your P45 into your first payslip
• Claiming for tax allowances that are no longer relevant

It is the taxpayers responsibility to make sure you are on the correct tax code.

If you are not sure, there is no need to fear, for £75+VAT we can ensure you are on the right tax code including changing it with HMRC and calculating any tax shortfall for you.

Don’t get lumped with a surprise tax bill this year especially when the HMRC interest rate for late payments is at 7.75% – contact us now to arrange a time to sort yours out for you.