HMRC update: Personal Allowance & tax code letters begins to arrive in the post | Personal Finance | Finance

0
19


HMRC, formally known as Her Majesty’s Revenue and Customs, helps millions of people with their tax affairs each year. As the new tax year draws closer, the Revenue has provided an important update to Britons which may include vital changes. A new tax year will often mean people will need to consider what they are due to earn, and subsequently how much tax they are set to pay.

As is evident from Britons’ comments, some will have questions about the information their letter contains. 

If a person feels they need further assistance in understanding the information, they should contact HMRC as soon as possible.

In addition, some people may believe the information contained within the letter is incorrect. 

In a similar way, reaching out to HMRC in this instance will be key in order for the issue to be rectified as soon as possible. 

HMRC then introduces a letter into a tax code, which refer to a person’s situation and how this will affect their Personal Allowance.

The letter L, for example, represents a person is entitled to the standard tax-free Personal Allowance, while NT will show a person is not paying any tax on this income.

A full list of letters which can appear on tax codes is made available on the Government website to offer further clarity. 

However, finally, it is worth being aware of emergency tax codes, such as 1250W1, 1250M1, or 1250X.

These codes mean a person will pay tax on all income above the basic Personal Allowance – but they are only temporary.

These could arise if a person is receiving the state pension, starting a new job, or is now working for an employer after being self-employed.

Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to personal.finance@reachplc.com





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here