HMRC has released a new tool to help individuals understand why they’ve been issued a new tax code. There are several different reasons why HMRC will issue a new code as listed below:
- you start to get income from an additional job or pension
- your employer tells HMRC you have started or stopped getting benefits from your job
- you get taxable state benefits
- you claim Marriage Allowance
- you claim expenses that you get tax relief on
As the employer or payroll bureau will not be informed why an employee’s tax code has been changed this tool should prove very useful in understanding the tax code change and reasons behind it.