Tax Rebates & Refunds

Everything you need to know about emergency tax

October 31, 2012
Posted in Tax Rebates — Written by Chris

If you think you are paying the wrong amount of tax, the most likely explanation is that you are on an emergency tax code.

Emergency tax is taken from your earnings if you have been put on an emergency tax code. This most commonly happens when you start a new job and your employer isn’t sure what tax code to put you on.

The reason you need to know about emergency tax is that it is at a higher rate than standard income tax, the tax you should be paying. If you are on an emergency tax code, you could be paying more tax than you need to without even realising it.

Emergency tax codes often have a prefix or suffix of:

• WK1
• X
• BR
• MTH1

Check your payslips and if your tax code looks like any of the above, you need to take action. The first thing you need to do is contact the HMRC to ensure you get put on the right tax code, and the second step is to put in a tax rebate claim for the extra tax you have paid unnecessarily. Alternatively, you can use a tax rebate service to get everything sorted out for you.

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