Check your PAYE code

By checking your PAYE coding notices you can make sure that you are paying the right amount of tax. Many people do not know they may be paying more tax than they should. Or you may not be paying as much as you should and you then have a responsibility to let HMRC know.

Most UK taxpayers assume their PAYE code and coding notices are correct. This is like signing your tax return without reading it.

The majority of people in the UK have most of their tax collected through PAYE. A December 2006 National Audit Office report indicated that HMRC estimated that last year taxpayers may have overpaid around £500 million via PAYE, and that £1 billion of tax may have been underpaid. They estimate that 5.7 million taxpayers may not be paying the right amount of tax.

So, check you PAYE code (or get your accountant to do it)!