In the UK, your tax code determines how much Income Tax is deducted from your salary through the Pay As You Earn (PAYE) system. If this code is incorrect, it can result in you either overpaying or underpaying tax potentially leading to financial complications. That’s why knowing how to contact HMRC about your tax code is essential for anyone working or receiving income in the UK.
This blog explores the various ways to check your tax code, the reasons it might be wrong, and how to effectively reach out to HMRC for assistance.
Why Is It Important to Understand Your Tax Code?
Understanding your tax code is more than just recognising a few letters and numbers on your payslip. it directly impacts your monthly take-home pay. Each code reflects how much tax-free income you are entitled to, and whether HMRC has included any deductions for benefits, underpayments, or other adjustments.
If your code is wrong, you might end up paying more than necessary, which could strain your finances. On the other hand, underpayment may seem beneficial short-term, but HMRC will eventually seek the owed tax often at a time you’re least expecting it. Having clarity on your tax code ensures your earnings are taxed fairly and that you’re not caught off guard by unexpected bills or changes.
What Are the Common Reasons for a Wrong or Emergency Tax Code?
Tax codes can change frequently, and sometimes those changes aren’t accurate. One common reason is starting a new job without submitting a recent P45. In such cases, HMRC may apply an emergency tax code such as 1257L W1 or M1 until your income details are updated.
Multiple sources of income, such as having two jobs or a job alongside a private pension, can also confuse HMRC’s systems, causing misallocations of your personal allowance. Receiving company benefits like a vehicle or private healthcare, or experiencing shifts in income due to bonuses or part-time work, are additional triggers for incorrect codes.
Administrative errors either from your employer or within HMRC itself also occasionally result in incorrect codes being assigned. That’s why it’s important to monitor your payslips and notices closely.
How Can You Check Your Current Tax Code with HMRC?
To find out your current tax code, the quickest and most reliable method is through HMRC’s online Personal Tax Account. This secure portal allows UK taxpayers to review their income tax records, update personal details, and report any discrepancies.
After logging in using your Government Gateway ID, you’ll be able to view your current and previous tax codes, and check which employers or pension providers are linked to them.
Alternatively, your tax code can be found on your pay slip, typically listed near your name or national insurance number. It also appears on end-of-year documents like the P60, or on a P45 if you’ve recently left a job. In some cases, HMRC sends tax code notices by post or email when updates occur, especially at the start of a new tax year.
What Are the Different Ways to Contact HMRC About a Tax Code Issue?
There are several ways to contact HMRC if you believe your tax code is incorrect, each with its own level of convenience and urgency.
The most direct method is by calling the Income Tax helpline at 0300 200 3300. This line is typically open Monday to Friday, from 8am to 6pm, and is best used when dealing with complex issues such as incorrect deductions, emergency tax codes, or unexplained changes. Be prepared for some waiting time, especially during peak periods around the end or start of the tax year.
HMRC’s online services offer a faster, self-service option. By accessing your Personal Tax Account via the GOV.UK portal, you can check your tax code, update your employment details, and inform HMRC of any changes in circumstances. There’s also a digital assistant and limited live chat availability for general enquiries.
Although less common today, you can also write to HMRC if you prefer or need to include physical documents. However, postal enquiries can take several weeks to receive a reply and are not ideal for urgent matters.
When Should You Call HMRC Instead of Using Online Services?
While HMRC’s online services have improved significantly in recent years, not every issue can be resolved digitally. In certain cases, a phone call may be the most effective route especially if your query involves multiple jobs, pension payments, redundancy, or historical tax debt.
If you’ve already tried updating details through the online account but continue to receive incorrect tax codes, or if you’re unsure why your tax code keeps changing, speaking directly with an advisor offers real-time guidance. Additionally, if your overpayment or underpayment spans more than one tax year, a phone call is often required to clarify the calculations and next steps.
What Information Should You Have Ready Before Contacting HMRC?
To make your communication with HMRC efficient, it’s important to have the right documents at hand. The most essential piece of information is your National Insurance number, as this helps identify your tax records quickly. You should also have your most recent payslips, a P60 or P45 if available, and any notices from HMRC regarding your tax code.
If you’re contacting them about a specific job, having your employer’s PAYE reference number and the date you started or left the role will help. For those with more complex situations, such as multiple incomes or taxable benefits, it’s helpful to have a summary of all income sources and their approximate values.
How Do Employers and HMRC Work Together to Update Your Tax Code?
Your employer is responsible for applying the tax code provided by HMRC but does not determine or change it themselves. Whenever there’s a change in your employment or income status, your employer submits this information to HMRC through Real Time Information (RTI) reporting.
Once HMRC receives this data, they assess whether your current tax code still reflects your situation accurately. If a change is needed, they issue a new tax code notice directly to your employer.
This change typically takes effect in your next payroll cycle. In the meantime, your employer must apply the last tax code they were issued, even if you believe it’s incorrect so contacting HMRC yourself is essential when you spot a mistake.
How Long Does It Take for HMRC to Change or Fix a Tax Code?
Once you’ve reported a tax code issue, HMRC usually responds or makes the necessary change within 10 working days. In cases where a new code is issued, your employer should apply it in the next available pay run.
However, delays can occur during busy times, such as the start of the new tax year in April or during January when Self Assessment deadlines approach. If you don’t see an update after two pay periods, it’s worth following up to ensure your case hasn’t been overlooked.
What Should You Do If You Still See the Wrong Tax Code After Contacting HMRC?
If you’ve contacted HMRC but the incorrect tax code is still being used after several weeks, the first step is to double-check your Personal Tax Account. It’s possible that the update has been issued but not yet processed by your employer’s payroll system.
If nothing has changed, reach out to HMRC again and reference your previous communication or case ID if one was given. You may also want to confirm with your employer whether they’ve received any new instructions. In persistent or unresolved cases, you can file a formal complaint through the HMRC complaints process, ensuring your concern is escalated.
How Can You Prevent Future Tax Code Errors?
The key to avoiding tax code errors lies in keeping your records with HMRC up to date. Always inform them promptly when you change jobs, begin receiving benefits, or start earning income from a new source.
Regularly reviewing your Personal Tax Account also helps you spot discrepancies early. By taking a few minutes each quarter to check your employment details and tax history, you can address potential problems before they affect your pay. For added convenience, HMRC’s mobile app allows you to receive updates and check your tax code on the go.
Conclusion
Understanding your tax code and knowing how to contact HMRC about any issues is key to managing your income accurately. Whether it’s checking your code online, calling HMRC, or following up on a correction, staying informed ensures you pay the right amount of tax and avoid any unexpected surprises in your payslip.
FAQs About Contacting HMRC for Tax Code Issues
How do I know if my tax code is correct?
Compare your code to the standard personal allowance tax code, currently 1257L. If it differs and you don’t know why, it’s worth checking your tax account.
Can I fix a tax code issue myself?
You can report the issue to HMRC, but only they can make the changes. Employers cannot override HMRC’s instructions.
How long does a tax code update take to show on my payslip?
Usually within one or two payroll cycles after HMRC sends a new code to your employer.
What does BR or 0T mean in a tax code?
BR means all income is taxed at the basic rate (20%), while 0T indicates no personal allowance is applied.
Do I get a refund if I’ve overpaid due to the wrong tax code?
Yes. HMRC either adjusts your future tax or refunds the amount directly if you’re no longer employed.
Is there a best time to call HMRC?
Avoid Mondays and early mornings. Mid-week afternoons tend to have shorter wait times.
Can I contact HMRC by post for tax code issues?
Yes, but it’s slower than phone or online methods and only recommended for formal documentation.
Leave feedback about this