\n Following the announcement that pensioners who receive under \u00a335,000 a year will now receive winter fuel allowance, HMRC has confirmed it will take back the money from those with incomes above \u00a335,000 through their tax codes, or by asking them to complete a self-assessment tax return.\n<\/p>\n
\n HMRC said: “Winter Fuel Payments will be paid automatically without a claim, and any charges will be collected via PAYE, or via self-assessment for those with other income to declare.”\n<\/p>\n
What is a tax code?<\/p>\n
\n It may look like a secret code, but the formula is pretty simple (and explained below). The most common HMRC tax code is 1257L, which is based on the Personal Tax Allowance of \u00a312,570 – this is the amount you can earn before you need to pay tax.\n<\/p>\n
\n But, many people are paying too much tax – as we go into the HMRC tax year 2025 – 2026 it’s worth making sure you aren’t one of them – and if so, look at how to get a rebate.\n<\/p>\n
\n Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use.\n<\/p>\n
How to check your tax code<\/p>\n
\n You can find your tax code:\n<\/p>\n
\n\n This week’s ‘Joker’ #martinlewis<\/a> break bumper: If you have a 1250L tax code – what does the number bit stand for?<\/p>\n
a) Just an ID code
b) You can earn 10x that number tax free each year
c) It’s your additional allowance on top of the standard allowance\n <\/p>\n\u2014 Martin Lewis (@MartinSLewis) February 17, 2020<\/a>\n<\/p><\/blockquote>\n
\n If you check your tax code online or in the\u00a0HMRC\u00a0app, you can also:\n<\/p>\n
\n
- find your tax code for previous tax years\n <\/li>\n
- sign up for paperless notifications – this means\u00a0HMRC\u00a0will email you when your tax code changes\n <\/li>\n<\/ul>\n
Check what your tax code means<\/p>\n
\n You can use the HMRC\u00a0tax code checker<\/a>\u00a0to find out:\n<\/p>\n
\n
- what the numbers and letters in your tax code mean\n <\/li>\n
- how much tax you will pay\n <\/li>\n
- what you may need to do next\n <\/li>\n<\/ul>\n
What the numbers mean in your HMRC tax code<\/p>\n
\n The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year.\n<\/p>\n
\n HMRC\u00a0works out your individual number based on your Personal Allowance\u00a0and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any perks you get from your employer (such as a company car).\n<\/p>\n
\n @uktoday_<\/a> Here are the UK tax codes explained and how to check your tax code #uknews<\/a> #uktax<\/a> #taxcode<\/a> #uknewsheadlines<\/a> \u266c original sound – UKToday \ud83c\uddec\ud83c\udde7 Newsquest<\/a><\/p>\n<\/blockquote>\n
HMRC tax code letters and what they mean<\/p>\n
\n The full list can be found on the GOV.UK website, but these are the most common, and what they mean:\n<\/p>\n
\n
- L – For an employee entitled to the standard tax-free Personal Allowance\n <\/li>\n
- S – For an employee whose main home is in Scotland\n <\/li>\n
- BR\/ SBR – For a second job or pension\n <\/li>\n
- M – For an employee whose spouse or civil partner has transferred some of their Personal Allowance (through Marriage Allowance)\n <\/li>\n
- N – For an employee who has transferred some of their Personal Allowance to their spouse or civil partner\u00a0(through Marriage Allowance)\n <\/li>\n
- T – When HMRC needs to review some items with the employee\n <\/li>\n<\/ul>\n
\n Recommended reading:\n<\/p>\n
How to claim back tax with an HMRC tax rebate<\/p>\n
\n If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service.\n<\/p>\n
\n HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip.\n<\/p>\n
\n You can also claim back up to four additional years if you have been overpaying for some time.\n<\/p>\n