How to Change Your Tax Code from BR

Logging into the online service is the first step to finding your tax code from a previous tax year. Updating your tax code is necessary when your tax-free income (personal allowance) changes according to HMRC. Millions of people pay their taxes through the PAYE system, but not everyone needs a paper or paper tax code notification every year. If you have an underpayment related to a tax year prior to the current one, HMRC should have already notified you of the underpayment, likely through the issuance of a PAYE tax calculation (form “P800”).

HM Revenue & Customs (HMRC) issues a PAYE code to your employer to indicate what tax-free income you are entitled to in a particular pay period, so that taxes with the appropriate rates can be calculated on the balance. For example, if someone has not worked since the beginning of a fiscal year and succeeds on September 1, they will be granted 6,285 pounds sterling (approximately six months x 1.04 pounds sterling) of tax relief to deduct the salary for that month. If you think this may be the case, you should mention it to HMRC as soon as possible to ensure that your current tax code is correct. If you had a BR tax code during the past year, or any of the previous four tax years, you may also be owed a refund for these years.

This is because if the amount of the basic personal allowance changes every year, HMRC and your employer (or pension provider) can update your tax code automatically by referring to the code letter “L”, without HMRC having to contact you. Your employer cannot change your code number until you receive a notification from HMRC. Normally, HMRC would include the underpayment in its tax code for the following year, but if this causes you difficulties, you can request that it be charged for a longer period of time, usually a maximum of three years. You may also be entitled to other subsidies, such as the allowance for blind people, or you may be entitled to seek tax relief for labor expenses, such as using your own car for business or professional subscriptions.

Keep all your coding notices to verify that HMRC has calculated your tax code correctly and that your employer is using the correct tax code for you. When your code is changed, any tax overpayment for that tax year is generally reimbursed with your salary. It's important to remember that updating your tax code is essential when your personal allowance changes according to HMRC. If you had a BR tax code during the past year or any of the previous four years, you may also be owed a refund. Your employer cannot change your code number until they receive notification from HMRC and any overpayment will generally be reimbursed with your salary.

Jacob Macdonnell
Jacob Macdonnell

Incurable zombieaholic. Passionate beer maven. Zombie trailblazer. Hipster-friendly coffee fanatic. Infuriatingly humble foodaholic.