Martin Lewis is the founder of the website MoneySavinExpert.com. Now, he spends much of his time helping members of the public make the most out of their hard-earned cash. Today, he warned employees that they may be overpaying on income tax. It comes after the new tax year began on April 6 last weekend.
Speaking to ITV viewers today, Martin reminded viewers that this new tax year would mean that everyone would get a new tax code.
He went on to explain that this affects take-home pay, adding that if it’s wrong, there could be “nasty surprises”.
However, it’s not the responsibility of an employer to ensure that the code is correct, but instead, it’s yours.
Luckily, Martin was on hand to guide viewers through the process.
“The basic code is 1250L – which when you add an extra zero on the end shows the amount you can earn before paying tax – which is £12,500,” he said.
This is the most common tax code for the 2019 to 2020 tax year.
Most people who have just one job, and no untaxed income, unpaid tax, or taxable benefits, such as a company car, will have this code.
However, it may be that you have ended up with the wrong tax code, Martin explained.
He told viewers: “If you’ve changed jobs, have more than one job, get employee benefits or are receiving more than one pension, you may have the wrong tax code.
“So check – there are free online calculators to help.”
If your tax code is wrong, you should contact HMRC as soon as possible, by calling 0300 200 3300.
Overpaying on tax could see you lose a chunk out of your monthly income, so it’s worth ensuring that it’s right as soon as you can.
“It can be a nightmare of over and under payments,” Martin said.
Yesterday, Martin told viewers there was an easy way that they could get their hands on £175 free cash.
NatWest unveiled this new deal, offering customers £125 if they switched to their bank – with an additional £50 being made should they still use the account come June 2020.
The Money Saving Expert explained that these bank offers had been seen a number of times before but rarely offer so much money these days.
He said: “Out of nowhere, NatWest has suddenly launched the biggest one I’ve seen for 18 months.”
This Morning airs weekdays on ITV from 10.30am.
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