With the new tax year now underway, those of you on PAYE will probably have been issued a new tax code by HMRC.
Although in the majority of cases these are fine, it is always worth checking that your code has been calculated correctly, as HMRC are certainly not immune to making mistakes (particularly if you are in receipt of more than one private pension)!
In addition, HMRC may have included estimates for future income in the code - i.e. rental profits - which means that you will be taxed on that income earlier than if you were to have your tax assessed through your tax return!
Nobody likes to be hit with an unexpected underpayment, so it’s far better to ensure any errors are picked up early on.
Please note that tax advisors don’t always automatically get sent copies of their clients’ coding notices, so if you have an accountant, it is always a good idea to forward a copy to them to check on your behalf.
Alternatively, you can review your tax code and make adjustments through your personal tax account.