Last updated January 2023

Getting stuck on the wrong tax code can lead to some serious headaches. Your tax code tells your employer how much Income Tax to take out of your pay before you get it, so having the wrong tax code applied to your job can mean you’re paying too much or too little tax to HMRC.

If you’re paying too much, you may be able to claim back what you’re owed as a tax rebate. If you’re paying too little, though, you’ll have to pay what you owe, as soon as you can to avoid any fines or penalties!