If you work in the UK and just got your P60 form from your job, don’t just put it away. Experts are warning that even a small mistake on this form might mean you’ve been paying too much tax for months — maybe even years!
Every year, companies must give employees their P60 form by 31 May. This form shows how much money you earned and how much tax you paid in the last tax year.
If something is wrong, you might be able to get some money back — sometimes as much as £700 or more!
What Is a P60 and Why Is It So Important?
Your P60 is not just a boring form — it’s a record of your yearly earnings and tax payments. It helps you check that you were taxed correctly.
According to Robert Jones, CEO of Swift Refunds, your P60 could also be a warning sign. If your tax code is wrong, the taxman (HMRC) may have been taking too much money from your pay.
Between January and March 2025, HMRC refunded over £44 million to workers because of tax mistakes. On average, people got back about £2,881 each. That’s a lot of money!
What Should You Look for on Your P60?
The tax code is the most important part of the P60. You can find it near the top of the form.
Most workers in the UK should have the code 1257L. This means you don’t have to pay tax on the first £12,570 you earn.
But some other codes might appear. These need your attention:
- BR – No tax-free amount. You’re taxed 20% on all your pay.
- D0 / D1 – Higher tax rates, no tax-free money.
- No ‘L’ – You might not be getting the standard allowance.
Sometimes these codes are correct. For example:
- You had freelance or contract work
- You changed jobs recently
- You have more than one job
- HMRC has old or wrong information about you
But if none of these situations apply, your tax code might be wrong, and you could be owed hundreds or thousands of pounds.
<h2>How to Check If Your Tax Code Is Wrong</h2>
Here’s what to do:
- Look at your latest payslip or P60 to find your tax code.
- Go to the GOV.UK website.
- Use the “Check your Income Tax for the current year” tool.
This tool helps you:
- Confirm your tax code
- See your Personal Allowance
- Estimate your yearly tax
Note: If you’re self-employed and use Self Assessment, this tool won’t work. You must check your tax through the Self Assessment system instead.
What To Do If Your Tax Code Is Wrong
If your code is wrong, HMRC or your employer will not fix it automatically. You need to report the error yourself.
Here’s how:
- Call HMRC directly
- Update your details online on GOV.UK
- Speak to a tax expert or accountant
Don’t wait! The longer you ignore it, the more money you might lose.
Common UK Tax Codes and What They Mean
Here’s a quick guide to what the codes mean:
- L – Standard tax-free amount
- M / N – For Marriage Allowance (between partners)
- T – Special calculations used
- 0T – No allowance, often for new jobs
- BR / D0 / D1 – Higher or basic rate, no tax-free allowance
- NT – No tax taken
- S / C – Scottish or Welsh rules apply
- K – Paying back tax owed
- W1 / M1 / X – Emergency tax codes for job changes
Make sure your code fits your real-life situation. A wrong tax code can quietly take £50 to £100 more from your salary each month.
Why Checking Your P60 Can Help You Get Money Back
Many people think the P60 is just another form. But it can be your chance to get a refund.
Some people have received over £2,800 in tax refunds just by noticing the wrong tax code.
Taking a few minutes now to look at your tax code could make a big difference. If something looks strange, don’t wait — check it online or talk to HMRC. A simple check could save you hundreds or even thousands of pounds!
Conclusion
Your P60 isn’t just paperwork—it’s a financial safety check. If your tax code is wrong, you may be losing money every month without knowing. Make sure to review your P60 carefully. A simple check could mean getting back £700 or even more.
Don’t ignore it—act today, check your tax code, and make sure you’re getting what you deserve. It only takes a few minutes but could lead to big savings for you or your family.
FAQ’S
What is a P60 and why is it important?
A P60 shows how much you earned and how much tax you paid in a year. It helps you spot mistakes.
What is the normal tax code?
Most UK workers have the tax code 1257L, which gives a £12,570 tax-free allowance.
What do BR, D0, or D1 mean?
These mean no tax-free allowance and are often used for people with more than one job.
How do I check my tax code?
Use the tool on GOV.UK to see your code and tax details.
What if my tax code is wrong?
Call HMRC, correct it online, or talk to a tax expert. They won’t fix it unless you tell them.