Is Your Tax Code Wrong? Here's How to Check and Claim Back Any Overpaid Tax
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Every year, thousands of UK workers discover they've been placed on the wrong tax code, often without realising it. The result can be hundreds or even thousands of pounds in overpaid tax.

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The good news is that if you've paid too much tax because of an incorrect tax code, you may be able to claim it back.

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In this guide, we'll explain what a tax code is, how to check if yours is correct, common reasons why tax codes are wrong, and what you can do to put things right.

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What Is a Tax Code?
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Your tax code is used by your employer or pension provider to calculate how much Income Tax should be deducted from your wages before you're paid.

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Most employees are assigned a tax code by HMRC based on their personal circumstances.

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The numbers in your tax code usually represent your tax-free Personal Allowance, while the letters tell your employer how that allowance should be applied.

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What Is the Standard Tax Code?

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For many people, the standard tax code is 1257L.

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This means you're entitled to the standard Personal Allowance before paying Income Tax.

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However, not everyone will have this code. Your tax code may be different depending on your circumstances.

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How Do I Check My Tax Code?‍

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You can usually find your tax code on:

• Your payslip.
• Your P60.
• Your P45.
• Your Personal Tax Account on the HMRC website or app.
• Letters you've received from HMRC.

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If you're unsure whether your tax code is correct, it's worth checking sooner rather than later, as mistakes can continue for months if they're not identified.

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Common Reasons Your Tax Code Might Be Wrong
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There are several reasons why HMRC may issue an incorrect tax code.

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You Started a New Job

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If your employer didn't receive the correct information when you joined, you may have been placed on an emergency tax code.

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You Have More Than One Job
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If you have multiple employers, your Personal Allowance may have been allocated incorrectly between them.

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You Changed Jobs During the Tax Year

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Sometimes payroll information isn't transferred correctly when changing employment.

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You Receive Benefits from Your Employer
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Company cars, private medical insurance and other taxable benefits can affect your tax code.

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HMRC Has Incorrect Information

Occasionally HMRC may simply have outdated or inaccurate information about your employment or income.

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What Is an Emergency Tax Code?‍
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An emergency tax code is a temporary code used when your employer doesn't have enough information to calculate your tax correctly.

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Common emergency tax codes include:

• 1257L W1
• 1257L M1
• 1257LX

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Being on an emergency tax code doesn't necessarily mean you've done anything wrong, but it can result in paying too much tax until the correct information is received.

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Signs You Could Be Paying Too Much Tax
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You may have an incorrect tax code if:

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• Your take-home pay suddenly drops.
• You've recently changed jobs.
• You've returned to work after a break.
• You have multiple jobs.
• You notice an unfamiliar tax code on your payslip.
• HMRC has contacted you about a change to your tax code.

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If any of these apply, it's worth checking your position.

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Can I Claim Back Overpaid Tax?
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Yes. If you've paid too much tax because of an incorrect tax code, you may be entitled to a refund.

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Depending on your circumstances, HMRC can repay tax that has been overpaid, and in some cases you may also be able to claim for previous tax years if you're within the relevant time limits.

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How Long Does It Take?

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Once HMRC has reviewed your tax position, any refund due is usually paid directly to you.

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Timescales vary depending on your circumstances and the time of year, but acting promptly can help avoid further overpayments.

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How Go Tax Refunds Can Help

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Checking your tax code isn't always straightforward, particularly if you've had several employers, agency work, taxable benefits or changes in income.

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At Go Tax Refunds, we help people across the UK identify whether they've paid too much tax and assist with claiming back money they're legally entitled to.

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Our experienced team can:

• Review your tax position.
• Check whether your tax code appears correct.
• Identify potential overpayments.
• Handle the claim with HMRC on your behalf.
• Keep you updated throughout the process.

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Frequently Asked Questions

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What does 1257L mean?

1257L is the standard tax code for many UK employees and reflects the standard Personal Allowance. Your circumstances may mean a different code applies.

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Is an emergency tax code permanent?

No. Emergency tax codes are usually temporary and should be updated once HMRC receives the correct employment information.

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Can I have the wrong tax code for years?

Yes. Some people only discover an incorrect tax code after several tax years, which is why regular checks are important.

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Will HMRC automatically refund me?

Sometimes HMRC will issue refunds automatically, but not always. If you think you've overpaid tax, it's worth investigating rather than waiting.

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Think Your Tax Code Might Be Wrong?

A simple tax code error could mean you've paid more tax than necessary.

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If you're unsure whether you're paying the correct amount of tax, our team can review your situation and help identify whether you're due a refund.

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Contact Go Tax Refunds today for a free eligibility check and let us help you claim back any tax you're owed.

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