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Millions of UK Workers Urged to Check P60 Tax Codes for Potential Refunds

Incorrect tax codes on P60 forms could mean overpayments averaging £700, with HMRC offering refunds for errors identified within four years.

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Overview

  • Employers are required to issue P60 forms by 31 May, summarizing pay and tax deductions for the previous tax year ending 5 April.
  • Workers are advised to inspect the 'final tax code' on their P60s, as errors could lead to overpayment or underpayment of income tax.
  • Common incorrect codes, such as 'BR', 'D0', or 'D1', may omit personal allowances, resulting in higher taxation rates.
  • HMRC has already repaid £44 million in overpaid taxes in early 2025, with the average refund amounting to £2,881 per individual.
  • Refunds for overpaid taxes can be claimed via HMRC’s online, phone, or app services, typically processed within five days, with a four-year deadline for claims.