Martin Lewis warns viewers to check tax codes: ‘Millions of them are wrong each year’

‘It is your legal responsibility to check your tax code is right,’ advises money saving expert

Ellie Muir
Tuesday 13 December 2022 06:47 EST
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Martin Lewis urges employees to check tax code as ‘millions are wrong’

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Martin Lewis has urged This Morning viewers to check their tax codes.

The MoneySavingExpert founder appeared on the show today (Tuesday 13 December), where he warned that “millions of tax codes aren’t right”.

“It is your legal responsibility to check your tax code is right – millions of them are wrong each year,” he told a caller who’d been told he owed money to HMRC after learning his tax code was wrong.

Lewis warned viewers that if their tax code is incorrect and they are paying too little tax, they could be faced with paying money back at a later date.

“If you have underpaid tax because your tax code is wrong, you will have to pay that back,” he explained. “There is little wriggle room on this.”

Martin Lewis is helping millions of people to navigate the cost of living crisis with proactive financial advice at a time when many are having to make sacrifices in order to make ends meet.

He brings advice to his appearances on his ITV programme The Martin Lewis Money Show Live, via his BBC podcast, his website and newsletter. He appears in regular TV interviews.

On the government website, advice about tax codes reads: “In most cases, HMRC will automatically update your tax code when your income changes. They’ll usually get this information from your employer.”

Consumer champion Martin Lewis has warned viewers to check that they are paying the correct amount of tax
Consumer champion Martin Lewis has warned viewers to check that they are paying the correct amount of tax (PA Archive)

“If HMRC has the wrong information about your income, you may be given an incorrect tax code.”

“To correct your tax code, make sure HMRC has up-to-date details about your income.”

If you’ve paid too much or too little tax by the end of the tax year (5 April), HMRC will send you either a tax calculation letter (also known as a P80) or an assessment letter. This will allow HMRC to calculate if you get a refund or pay back tax you owe.

You can check if your income tax code is wrong here.

In the latest episode of The Martin Lewis Podcast, the financial guru gave listeners tips about saving money on energy bills and seeking greater payment flexibility, a particularly timely concern given the arrival of freezing temperatures this December.

Lewis advised direct debit customers struggling with saving money on bills to get a smart meter, submit regular readings and check an online Direct Debit calculator to determine where they can save money.

You can find out more information about your tax code and check whether it’s correct here.

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