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Martin Lewis Urges Workers to Check Payslip Tax Codes as Refunds Could Run to Thousands

He warns that verifying the code is each employee’s legal responsibility because many are set incorrectly.

Overview

  • MoneySavingExpert says millions of tax codes are wrong each year, which can leave people either overpaying or facing a future bill.
  • An MSE reader who corrected her code reported a £9,400 rebate after being taxed without the personal allowance.
  • Tax codes are shown on payslips, P45s, P60s and pension slips, and they can be checked through HMRC’s website or app.
  • Those with multiple jobs or private pensions receive a separate code for each income source, so all codes should be reviewed.
  • Birmingham Live reports some refunds run into the thousands, with average payouts said to be about £2,000, and a refund firm says clients have reclaimed large sums after job changes or time off led to wrong codes.