Tax codes explained Checking your tax code
When you turn 75, contact HMRC about your tax code
Mistakes can arise with your code, as many of the figures shown on your coding notice are estimates and will vary according to your individual circumstances. If you have more than one source of income, PAYE codes may be allocated incorrectly, causing you to pay more tax than you should.
If your tax code is wrong
Your coding notice shows all the allowances and deductions that you are entitled to, and it is this information that is used to work out your tax code. It is crucial that you check the details and notify your tax office of any discrepancies – otherwise, you may end up paying the wrong amount of tax.
To see what a coding notice looks like – and a detailed explanation of what it means – see the annotated specimen from HMRC (below):
Resources
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HMRC Coding Notice (PDF: 140Kb)17 April 2009
Tax code checklist
- Check your tax code. Aim to sort out any problems promptly, by contacting your tax office.
- Ensure all allowances and reliefs you are claiming are shown on your coding notice.
- Contact HMRC if your circumstances change – for example, if you become self-employed, you have new sources of untaxed income, you become widowed, married or divorced, or you are approaching 65 or 75 years – as these could affect your tax code.
More help with tax codes
HMRC leaflets and forms
- IR121 Approaching retirement: a guide to tax and National Insurance contributions
- IR208 Payslips and coding notices
- P2 Coding notice
- C/FS Complaints and putting things right (factsheet)
HM Revenue & Customs
- Tax query? Speak to our experts on the Which? Money Helpline
- Take a look at our full guide to tax and allowances for older people
- Confused about your tax code? Read our expert guide
