Tax Rebates & Refunds

3 ways to check if you’re paying the right income tax

December 25, 2012
Posted in Income Tax — Written by Geoffrey

The income tax system doesn’t need to be complicated, although it may seem that way at first. It is important to work out whether you are paying the right income tax or not though, and you can do this via one of three very simple methods.

These are:

1. Check your tax code. This is the best way to find out whether you are paying the right tax or not, and it’s also the easiest. Find your tax code on your payslip, PAYE Coding Notice, P45 (you get this when you leave a job) or P60 (annual statement) form and check it on the HMRC website.

2. Use a tax checker tool. Specialist tax rebate claim companies, as well as HMRC, have tax checker tools available online to help you work out whether you’re paying the right tax. These are easy to use, but you will need to have a few key details to hand.

3. Check your tax calculation statement (for Self-Assessment taxpayers). If you are self-employed, you will need to check the tax calculation statement you receive from HMRC after you send your tax return in. This will outline how your tax was worked out, so you should easily be able to spot any errors or problems.

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