What should I do if I am on the wrong tax code?

There may be some situations when, while being on the PAYE, you are assigned the wrong tax code.

Typically, that would be tax code E (for emergency), which could mean that you are charged tax at a higher rate than you most likely should be.

It can happen because the payroll officer did not get all the information about your tax code from HMRC, or because you changed jobs and failed to provide the P45.

There may be many other reasons and situations. For example, if you are a student and work only when you are available, or for any other reason your working pattern is erratic, have other income streams that reduce your tax-free allowance (this includes pensioners who may draw their pension)

If you are on the wrong tax code, and you think you overpaid, get in touch with HMRC.    It is essential to get in touch immediately. Calling them is probably the best;  the helpline for individuals and employees is 0300 200 3300.

At the end of each year, HMRC also sends out the End of Year Tax Calculation - P800 form.

If you overpay in the middle of the year, you can request this form online (you would have to register for an online account with HMRC) or by calling the above number.

You can expect an immediate cash refund or an adjustment of your tax code.