UK workers who recently received their P60 forms are being urged to check them for HM Revenue and Customs (HMRC) tax code errors as they could have overpaid tax.
With the May 31 deadline having just passed for employers to issue P60s to all workers who were with them on April 5, some people may have been given incorrect tax codes.
P60s are financial statements issued to taxpayers at the end of a tax year. It is important Britons does not destroy the P60 forms issued to them, as they form a vital part of the proof that tax has been paid.
As such, these forms are vital to workers looking to claw back overpaid tax, apply for tax credits, or provide proof of income when applying for loans.
Workers are being urged to check their P60 letters from HMRC
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As it stands, the average overpayment made to British workers due to incorrect codes is almost £700.
Bosses across the country were required to provide P60s by May 31, either on paper or electronically, to employees who remained with them at the end of the tax year.
On the Government website, it states: "Your P60 shows the tax you've paid on your salary in the tax year (April 6 to April 5). You get a separate P60 for each of your jobs every tax year."
The guidance confirms that employers must provide P60s to anyone working for them on April 5, with the deadline set at May 31 for delivery either on paper or electronically.
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Workers should check their 'final tax code' listed near the top of their P60 statement for specific codes.
The codes to look out for include "BR", which means all income is taxed at 20 per cent with no tax-free allowance,.
As well as this, workers should watch out for either "D0" or "D1" code, which indicate taxation at higher rates without any allowance.
If there is no "L" in the tax code, workers might not be receiving the standard £12,570 personal allowance.
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Britons are being urged to check if they are entitled to a refund
GETTYHowever, these codes are not always mistakes and can appear legitimately on P60 forms in certain circumstances.
They may show up if workers changed jobs during the tax year.
Furthermore, these codes could appear if someone has been working in multiple roles, has had a period of contract or freelance work, or if HMRC has outdated or incorrect information about their situation.
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