HMRC have released a new online tool to help taxpayers understand what their tax code means. Tax codes play a pivotal role in the “Pay as you earn” (PAYE) system, guiding employers on income tax withholding. These codes are subject to periodic alterations based on personal circumstances. HMRC ensures taxpayers are notified of such changes via mail or their tax accounts.
This tool deciphers the significance of numbers and letters within your tax code, offering insights into your tax obligations. To unlock this insight, gather your:
- Tax code
- Pre-deduction annual income
- Company benefits insights
- State Pension amount
For comprehensive details, visit: Check what your tax code means – GOV.UK (www.gov.uk).
Need to modify your tax code? Leverage the “Check your Income Tax for the current year” tool by HMRC, active for the present tax year (6 April 2023 to 5 April 2024). Benefit from the tool’s functionalities to:
- Review your tax code and Personal Allowance
- Estimate income from employment and pensions, gauging expected tax liabilities
- Update income details to avoid over or under-taxation
- Track tax code alterations
- Communicate tax code-affecting changes to HMRC
- Revise employer/pension provider details
To initiate the Income Tax assessment, log into your tax account via Government Gateway credentials.
Don’t possess a personal tax account? Establish one with a Government Gateway user ID and password. If new to the system, you can create a user ID during your first login. The prerequisites include your National Insurance number or postcode plus any 2 of the following:
- Valid UK passport
- UK photocard driving license issued by DVLA (or DVA in Northern Ireland)
- Payslip from the last 3 months or P60 from the past tax year
- Details of a tax credit claim (if applicable)
- Information from a recent Self-Assessment tax return
- Pertinent credit record information (e.g., loans, credit cards, mortgages)
Check your Income Tax for the current year – GOV.UK (www.gov.uk)
