Millions affected by tax code errors could be due payments, here's how you can claim it

The end of the financial year on April 5 is fast approaching and so if you haven’t already done it, now is the perfect time to get on top of your finances to ensure you are not overpaying on tax. Allowances and reliefs are in place throughout the tax year but with the income tax threshold frozen for next year it’s important to double check where you stand financially.

Millions of workers are hit by tax errors each year and are due back £1,000s in payments and by following these steps you can see how much you should be paying and also check if you’ve overpaid in the past, as per The Mirror.

Claiming back overpaid tax

If you’ve been overpaying tax for whatever reason you could be eligible for a refund. It’s possible to even file backdated claims for the last four tax years and so definitely worth checking if you’re not sure.

There are a number of reasons why you could have been paying too much tax.

For example, as per LITRG:

• you started a new job and had an emergency tax code for a while
• your employer was using the wrong tax code
• you only had a job for part of the tax year
• you had more than one job at the same time
• you are a student and you only worked during the holidays
• other income which HM Revenue & Customs (HMRC) tax through your tax code has reduced
• you stopped working and had no taxable earning or benefits for the rest of the tax year
• your circumstances changed – for example, you changed from full-time to part-time work

Additional reasons also include those who have made PPI claims since April 2016 and those eligible for Marriage tax allowance but who haven’t claimed it.

If you think any of these may apply to you then you need to check your tax code, which is made up of numbers and letters and is what HMRC uses to determine how much tax you pay each month.

Read more:

⋙ Households could get £1000 back on council tax bills, here's how to claim it

⋙ Millions eligible for marriage allowance can claim backdated payments of over £1200

Checking your tax code

If you already know your tax code you can go straight to a Tax Code Calculator to work out if there are any discrepancies between what you owe and what you have paid.

For most people, who have just one employer and earn under £100,000, their code is probably 1257L.

If you don’t know your tax code it is likely to be written on your payslip P60, P45, PAYE coding notice (or P2) or Pension advice slip. If you’re still having trouble finding it you can go check at HMRC online.

If your tax code doesn’t look right then you should tell HMRC straight away that you think your tax code may be wrong and explain why.

It’s best to call HMRC on 0300 200 3300 so you can discuss the issue directly with an advisor who will be able to help you with your claim. However you can also claim online via your personal tax accountusing your Government Gateway, as per gov.uk.

Read more:

⋙ Thousands could be missing up to £11K in payments, check if you're affected

Sources used:

- The Mirror 'End of tax year: 7 things to check NOW that affect everything from savings to pensions'

- Money Saving Expert 'Free Tax Code Calculator

- Low Incomes Tax Reform Group 'How do I claim back tax I have overpaid through PAYE on wages or pensions?'

- Gov.uk 'How to claim a tax refund