Notice Of Coding
The ‘notice of coding’ more commonly known as your tax code you receive each year tells your Employer how much tax to deduct from your pay. Did you know that HMRC place the responsibility on you to check your tax code and if you don’t you don’t check it you could be paying too much tax?
Klarity Tax can review your annual ‘notice of coding’ that comes from the HMRC to check whether it is right and help you understand if it is wrong. and provide advice on how to claim it back. This service is included in the Klarity Tax Personal Tax Management Service
What does my tax code look like?
Each year you receive a ‘PAYE Notice of Coding’ (form P2) from HMRC that provides you with your tax code and why you have that tax code. It includes numbers and letters and the numbers usually (not always) refer to how much tax free income you can earn in a single year. More importantly your tax code tells you whether you may be paying too much tax in this tax year and potentially up to four years if it has been wrong for some time.
Check the following table to see if you need to check you have the right tax code
What happens if I don’t get my tax code right?
Your employer is deducting too much tax in the forthcoming tax year
Your employer has deducted too much tax in previous tax years
Your employer isn’t deducting enough tax in the forthcoming tax year and you face receiving an unexpected tax bill in the future
How can Klarity Tax help me?
Your personal tax advisors will:
Collect information from yourself and third parties (with your permission)
Deal with all correspondence to prepare for your tax code assessment
Complete a tax code assessment for the forthcoming tax year
Complete a tax code assessment for previous tax years if the current one is incorrect
Provide advice on how to correct your tax code so that your employer deducts the correct level of tax
For an additional fee, they can also provide access to one of other services (tax return check or completion) to ensure that you claim back any overpaid tax.
Providing the right information
It is important you ensure the information provided to your personal tax advisor is complete and accurate.
Rest assured if you haven’t completed a tax return before your personal tax advisor can help with this for a small additional fee – click here to read more about this service.