It may look like a random set of digits, but your tax code could be costing you thousands of pounds.
Martin Lewis was on Good Morning Britain today explaining that all employees in the UK need to urgently check their tax code.
He said that millions of codes written on either your payslips, P45s, P60s and coding notices are wrong and could cost you big.
Martin said that with the new tax year starting last Saturday (April 6) everyone will have received a new tax code, which effects your take-home pay, so if it is wrong it can lead to a nasty surprise.
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However, it is your responsibility to check if the tax code is right - not your employers.
The basic code is 1250L – which when you add an extra zero on the end shows the amount you can earn before paying tax (£12,500).
But if you’ve changed jobs, have more than one job, get employee benefits or are receiving more than one pension, you may have the wrong tax code.
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The best way to check is by using a free online calculator.
If it seems to be wrong,it could be worth taking action to check out whether you're owed (or owe) cash.
You can contact HMRC on 0300 200 3300.
