Knowledge from Crunch - love accounting

What should I do if my tax code is incorrect?

Posted on Nov 21st, 2018 | Tax

What should I do if my tax code is incorrect? - A freelancer on the phone to HMRC

If your tax code is incorrect, you could be paying more tax than you need to or even underpaying tax.

If you move between employments, and your entitlement to benefits in kind has changed, or you have paid the wrong amount of tax in previous years, there may be a delay as HMRC updates its records. Consequently, you may be overpaying or underpaying tax.

What should I do if I believe my tax code is incorrect?

If you think you are paying the wrong amount of tax, you should contact HMRC on 0845 3000 627. Have as much information to hand as possible to support your view that your tax code is wrong (such as your P11D and P45 from previous employers).

Your accountant won’t be able to call on your behalf as HMRC will not accept communication through an agent on this matter.

What do I need?

You’ll need your National Insurance number and your company PAYE scheme reference.

Cloud software can revolutionise your accounting

Crunch - Online accounting, expert advice, real people

Crunch is the perfect combination of accountancy software & service. Over 10,500 clients trust us with their business finances - let us help you, so you can focus on growing your business.

Join Crunch Chorus:
The free community for the self-employed

You'll get access to a range of benefits, such as invoice software, jargon-free business guides, great networking opportunities, discounts, plus much more

Written by Tom West

Useful tools and resources

Business guides

From understanding expenses to starting a limited company, we've a range of jargon-free business guides for you to download and keep.

Invoicing software and templates

Create, send and store sole trader invoices in a snap with our free invoice software. You can also download a selection of invoice templates for all business types.

Take-home pay calculator

Use our Take-Home Pay Calculator to work out your true earnings and see if you could save money with a different company set up.