HMRC Warns Workers About Changing Tax Codes Following Job Switches
# HMRC Issues Tax Update Over Payslip Change
The HMRC has raised concerns regarding alterations to tax codes that individuals may notice on their payslips. This advisory comes following reports from employees who have observed unexpected changes, especially after switching jobs.
One individual shared their experience on social media, stating, “Today I noticed a difference in my tax code for the last financial year. In my previous job it was 1257L, but after joining my current organisation it changed to 1148L. Can anyone advise why this happens?” This situation reflects a broader trend as many workers face similar discrepancies.
The tax code change occurs primarily when individuals transition between employers. The HMRC explained that “that can happen if you change jobs, and the pay period of the last pay from the first overlaps with the pay period of the first pay from the second.” Such overlaps might lead to confusion regarding the appropriate tax code, potentially impacting take-home pay.
As tax season approaches, employees are encouraged to ensure their tax codes are correct and to consult the HMRC for clarification if discrepancies arise. It is essential to keep an eye on payslips to prevent unexpected deductions or issues with tax payments.
This report is for informational purposes only and is not financial advice.