HMRC Warns UK Households of Tax Code Letters as New Financial Year Begins
As the new financial year gets underway, HMRC is issuing letters to UK households with tax codes, warning them to review their tax codes to ensure accuracy. According to the Birmingham Mail, tax codes for the 2025/26 tax year, which began on April 6, 2025, are currently being issued.
The tax codes are used by employers or pension providers to determine how much tax to deduct from payments made to individuals. As the Birmingham Mail reports, Tax Aid explains that the basic Personal Allowance for 2025 to 2026 will be £12,570 for the whole of the UK. The threshold, or starting point, for PAYE is £242 per week, or £1,048 per month. The emergency code for the 2025/26 tax year is 1257L for all employees.
It is essential for individuals to review their tax codes to ensure that the tax deducted is as accurate as possible. As the Birmingham Mail notes, Tax Aid advises that individuals should take action to review their tax code, especially if they have more than one job or pension, or both an employment and a pension. This is to ensure that the tax code for each job or pension is accurate.
There are several common areas that may make an individual’s tax code more complex. These include taxable state benefits, such as the state pension, other employments or pensions, underpayments of tax from previous years, and work expenses. Additionally, HMRC may update an individual’s tax code partway through the year if they are informed of a change in circumstances.
As the Birmingham Mail reports, it is crucial to keep HMRC informed of changes that may impact an individual’s tax position, so that they can adjust their tax code accordingly. If HMRC does not have accurate information about an individual’s income, they may be issued with an incorrect tax code.
Inaccurate tax codes can lead to incorrect tax deductions, which can result in individuals owing tax or being entitled to a refund. Therefore, it is essential for individuals to review their tax codes and notify HMRC of any changes that may affect their tax position.
The new financial year brings with it a range of changes to tax codes, and the Birmingham Mail is urging individuals to take action to ensure that their tax code is accurate. By reviewing their tax code and notifying HMRC of any changes, individuals can ensure that they are paying the correct amount of tax.
For further information on tax codes and how to review them, individuals can visit the HMRC website or contact Tax Aid for guidance. As the Birmingham Mail notes, it is essential for individuals to stay on top of their tax codes to avoid any potential issues with HMRC.
In conclusion, as the new financial year begins, HMRC is issuing letters to UK households with tax codes, warning them to review their tax codes to ensure accuracy. By understanding how tax codes work and taking action to review their tax code, individuals can ensure that they are paying the correct amount of tax. As the Birmingham Mail reports, it is essential for individuals to stay informed and take action to review their tax codes to avoid any potential issues with HMRC.
