Tax code 1257L explained: ‘Millions’ in the wrong bracket – how to claim refund | Personal Finance | Finance

The most common one is 1257L and the way to work this out is to add a zero to the end which becomes £12,570 – their tax-free allowance.

He warned “It is crucial to check your tax code as millions of them may be incorrect, and it is neither HMRC nor your employer is responsible for verifying the correctness of your tax code; it is entirely your responsibility.

“If you have the wrong tax code, it could mean you might be entitled to get cash back if you have overpaid, but might also mean you have to pay some money back if you underpaid.”

How to check your tax code

People should have recently received a letter from HMRC with their new tax code.

READ MORE: Lloyds and NatWest to shut 248 bank branches this year

Check Also

Railing against cost of coffee as prices soar | Personal Finance | Finance

Caffe Nero has ratcheted up the cost of a large latte from £3.30 last summer …