Martin Lewis’ website MoneySavingExpert heard from a reader that she had just received £9,400 back from HMRC after entering the wrong tax number for three years. Millions more workers could also be refunded
ONE Martin Lewis The fan explained how they got their £9,400 back from the tax man with a simple check.
MoneySavingExpert reader is above wrong tax code for three years due to her employer’s fault.
She says her boss hasn’t updated her tax code – meaning she overpaid by thousands of pounds.
“It took an hour on the phone to HMRCbut I’ve now got my £9,400 refunded,” she told MoneySavingExpert.
Success stories were shared in MSE’s latest weekly newsletter – but the money-saving site estimates millions more workers could also have the wrong tax code.
This means you could also be owed thousands of pounds in overpaid tax.
How to check your tax number
Your tax code is made up of numbers and letters. It tells your employer or pension provider how much you can earn before it starts to be taxed.
The most common code for the current tax year is 1257L for those with a job or pension – although not everyone will be doing this.
If you are using this tax code, that means you could earn £12,570 before taxed in tax year 2021/22.
There are several ways you can find your tax number – the easiest way to check is to see your latest payslip or on P45 if you just quit your job.
You can also ask human resources if they can tell you your tax number.
The Gov.uk the site has a dedicated website where you can also view your tax code – to check it online you will need to apply for a government portal ID.
When you need to check that your tax code is correct, MoneySavingExpert There’s a free tax code calculator you can use to get a rough idea of whether yours is correct.
You’ll need to enter your pre-tax earnings and your current code, then the calculator will tell you if you’re using the correct code.
No tax calculator can tell you for sure if you’re on the right code – but this should give you a good indication.
How to get a refund if you overpaid
If you suspect you entered the wrong tax number, you can contact HMRC and ask them to investigate.
You can call HMRC on 0300 200 3300 or talk online with a customer service representative or member via their live chat service.
If your tax ID number is incorrect for the current tax year, HMRC will contact your employer to correct it. You’ll then get any tax owed back on your next paycheck.
If you’ve overpaid taxes for a while, you can claim up to four more years. This means you can rollback as of tax year 2017/18.
Have you managed to get back thousands of pounds from the tax man? Let us know: email@example.com
However, flagging HMRC is still worth it if you think you’ve overpaid for longer than this time.
Workers investigating their tax code may also discover that they have paid low taxes – in this case, you will owe HMRC money.
It is better to resolve this issue sooner rather than later to avoid having to pay a larger amount.
You can try and get your tax forgiven if you missed it through no fault of your own – but this is not a guarantee.
You can do this by asking for a so-called “Statistical Additional Concessions” or A19 from HMRC.
https://www.mirror.co.uk/money/martin-lewis-fan-gets-9400-26309750 Martin Lewis fans get £9,400 tax refund after three-year error - check yours