What is the 2019/20 PAYE Tax Code? – TaxBack

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What is the 2019/20 PAYE Tax Code?

Could You Be Due for Tax Refunds? UK Taxpayers Time to Get Updated!

Check the PAYE tax codes and seek tax refunds, UK taxpayers are eligible to claim from HMRC for any overpaid income tax!

Under the wrong PAYE tax code, your employer could be deducting more than is due from your salary towards your UK income tax payments. Worse still you could be paying less than is due, under the wrong PAYE tax code, resulting in fines or recovery of funds in large sums by HMRC.

Want to double check your PAYE tax code? Talk to a tax accountant at Taxback for a proper evaluation of your case; the safest and most efficient means of avoiding getting fined and paying the tax man more than is necessary. In the meantime, listed below are general PAYE tax codes for 2019/20.

Related Post: Important UK Tax Processes and Dates You Should Remember

The Basic PAYE Tax Code for 2019/20

The basic PAYE tax code for employees is 1250L, it is also known as the ‘emergency code’ or the ‘default code’ and allows employees a tax-free Personal Allowance of up to £ 12,500 annually. 

Employees claiming ‘marriage allowance’ (due to a spouse earning a low-income) have a PAYE tax code with the suffix M. Those not claiming marriage allowance, have the suffix N.

Employees earning above £ 125,000 annually have no personal allowance and fall under an OT tax code.

What is the Tax Code Ending in OT?

Under this code you are not offered any tax allowances. It could be because you earn above £ 125,000 in a tax year or are employed as a casual worker, or you have not furnished your employer with any starting information.

How Important is It to Check My PAYE Tax Code?

Statistics show that less than 80% of employees do not bother to double check their PAYE tax code, a pity really as most end up paying too much tax and are probably eligible to claim a UK tax refund. 

You must also know the reason for your allotted code. Why it’s lower or higher; HMRC may have reasons for this allocation, such as claiming underpayments from a previous tax year. Either way its best you stay updated on your payments for UK income tax. Better still save yourself the hassle and let us get your tax file in order. Do contact us for an evaluation today!

Related Post: New UK Tax Return is live – PAYE Application Form

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