top of page

Blog.

HMRC, Tax Codes & Concrete Parachutes


Every April, people across the country woke up to that dreaded brown envelope from HMRC. You know the one - the magic letter informing you that your tax code has changed. And let’s be honest, chances are you either tossed it straight in the bin or repurposed it as a coaster!


But here’s the thing - HMRC isn’t infallible. Mistakes happen, and sometimes they’re as useful as a concrete parachute. Yet, the responsibility ultimately falls on you to ensure your tax code is correct.


What Could Go Wrong With Your Tax Code?

If HMRC has made an error (which happens more often than you’d think), you could either be paying too much or too little tax. Let’s take a look at some common tax code mishaps:


1️⃣ On the Road Again!

You’ve changed jobs, but HMRC still thinks you have a Benefit in Kind (BIK). Maybe that medical insurance or old company car you no longer use is still affecting your tax code. If HMRC hasn’t caught up, you could be due a tax refund—winner!


2️⃣ Just Plain Wrong!

HMRC hasn’t processed your P11D correctly. This is far too common! Cross-check your copy with the adjustment on your coding notice. If they’ve got it wrong, you could be paying tax on something you shouldn’t be.


3️⃣ All Change!

Sometimes HMRC estimates that you underpaid tax in a prior year and decides to collect it through your tax code. But what if your circumstances have changed, and that underpayment isn’t relevant anymore? Time to call them up and say, "Tax refund, please, Mr. Tax Man!"


4️⃣ Those Pesky Kids!

If you’re a higher-rate taxpayer and you’ve stopped or started receiving Child Benefit, HMRC should adjust your tax code accordingly. But let’s face it, they don’t always get it right! If they haven’t, it could mean you’re either overpaying or underpaying tax.


5️⃣ Render to Caesar… But Caesar Lost His Abacus!

HMRC may be collecting unpaid tax through your code, yet you already settled it—either via self-assessment or a direct payment to HMRC. If they haven’t updated their records, you could be needlessly handing over extra cash.


6️⃣ For Love, Nor Money!

Your Marriage Allowance is missing! Whether you’re transferring it to your partner or receiving it from them, make sure it’s correctly reflected in your tax code.


Think Something’s Amiss?


If any of this sounds familiar, it’s time to take action. Drop HMRC a line at 0300 200 3300 with your NI number to hand. You never know—there could be a nice little sum waiting for you to treat yourself!


Need Expert Payroll Support? We’ve Got You Covered!

Tax codes, PAYE, and payroll compliance can be a minefield—so why not let the experts handle it for you? At [Your Business Name], we specialise in helping accountants and businesses navigate payroll challenges with ease.


Accurate PAYE & payroll processing

Expert tax code checks & adjustments

HMRC compliance & reporting support


🚀 Want stress-free payroll? Let’s chat! Get in touch today to see how we can take the hassle out of payroll for you.📩 austin@yourpayrollmanager.co.uk|

Man in denim shirt on phone with yellow background

Need some more info?

CTA-image-new (1).png

Get in touch & start the journey today!

bottom of page