NEWS

Check tax code following costly mistake

The government has urged millions of UK workers to check their tax codes following a ‘costly mistake’ which could result in lower salaries.

Errors in relation to HMRC tax codes mean that some workers may have paid too much tax on their earnings. Experts have warned that some employees may have already received less than they’re entitled to as a result of the error.

Incorrect salary deductions could also reduce a worker’s disposable income, experts said, and therefore affect an individual’s ability to save or cover regular expenses.

Commenting on the matter, Adam Bennett, Digital Marketing Manager at Digital ID, said: ‘If your tax code results in too much tax being deducted, you might receive a smaller pay cheque and could struggle financially until you reclaim the excess tax.

‘A wrong tax code could [also] mean you're underpaying tax, leading to a surprise bill from HMRC later, possibly with interest and penalties.’

06/06/2024