Find out how much tax you will pay this year with simple tool

People can find out if their tax code is correct for the current tax year using an online tool on the Government website. The tool can show a person how much income they will get from any employment and pensions and what tax they will pay on this.

Individuals may want to check now as with the recent start of the new financial year, some people may find their tax code has changed.

If a person is put in too high a tax code, they could overpay by thousands of pounds over the course of a year.

A person will need to set up a personal tax account to use the tool, which in turn requires setting up a Government Gateway user ID and password.

The tool can be used to find out information about a person’s taxes for the current tax year, from April 6, 2023 to April 5, 2024.

The service can be used to find out several details including:

  • Checking a person’s tax code and Personal Allowance
  • Seeing estimated income from any jobs and pensions and the tax they can expect to pay
  • Updating details of income from jobs and pensions. This is important as a person may pay too much or too little tax if their details are not correct
  • Check if their tax code has changed
  • Inform HM Revenue and Customs (HMRC) about changes that affect their tax code
  • Update employer or pension provider details.

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Those who pay their income tax solely using a self assessment will not be able to use the service.

To use the tool, a person will need their National Insurance number or postcode. They will also need to provide details of:

  • A valid UK passport
  • A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland)
  • A payslip from the last three months or a P60 from their employer for the last tax year
  • Details of a tax credit claim if they made one
  • Details from a self assessment tax return (in the last two years) if you made one
  • Information held on their credit record if you have one (This may include loans, credit cards or mortgages).

An individual’s tax code indicates how much of their earnings should go to the Government in taxes.

A Martin Lewis fan recently shared their success story in getting a £2,585 tax refund after their wife had been on the wrong code for four years.

Britons should be mindful that if their tax code is incorrect and needs to be changed, they may be underpaying tax and so their tax bill could increase.

A person may end up with the wrong tax code owing to several reasons, such as if their job changes or if their salary increases or decreases.

These are the letters that may appear in a tax code and what they mean:

  • L – The person is entitled to the standard tax-free Personal Allowance of £12,570
  • M – Marriage Allowance: they have received a transfer of 10 percent of their partner’s Personal Allowance, which is £1,260
  • N – Marriage Allowance: they have transferred 10 percent of their Personal Allowance to their partner
  • S – Their income or pension is taxed using the rates in Scotland
  • T – Their tax code includes other calculations to work out their Personal Allowance, such as if it is reduced because they have a high income
  • 0T – Their Personal Allowance has been used up or they have started a new job and their employer doesn’t have the details they need to give them a tax code
  • BR – All their income from their job or pension is taxed at the basic rate
  • D0 – All their income from this job or pension is taxed at the higher rate
  • D1 – All their income from this job or pension is taxed at the additional rate
  • NT – They are not paying any tax on this income
  • K – Income not taxed another way that is not worth more than the tax-free allowance.

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