How to correct an incorrect tax code and avoid overpaying or underpaying tax

What should I do if my tax code is incorrect? - A freelancer on the phone to HMRC
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An incorrect tax code can lead to overpaying or underpaying tax. This can happen if you change jobs, your benefits in kind change, or HMRC hasn’t updated its records from previous years

If you're not sure whether or not you're paying the right tax, we'd recommend checking out out our "how do I work out my tax?" article and our free take home pay calculator to work out how much income tax and NI you should be paying.

If you'd like to understand more about how your own code is calculated, take a look at our tax codes explained guide.

What steps do I take if my tax code is wrong?

If you think you are paying the wrong amount of tax, you should contact HMRC on 0300 200 3300. 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).

Can my accountant contact HMRC for me about an incorrect tax code?

Unfortunately, no. While your accountant can help you gather evidence if your tax code is incorrect, HMRC won’t accept communication from them on this matter. You’ll need to contact HMRC directly to sort out your tax code.

Essential information you need to correct your tax code

You’ll need your National Insurance number and your company PAYE scheme reference. Once you've got the right tax code, you'll be able to use our tax calculators to confirm that you're paying the correct amount.

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Tom West
Previous Community and Social Manager
Updated on
November 18, 2024

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