Best Accountants in Bebington

Accountants Chester Ask Whether You Missing Out On a Tax Refund? Accountants Chester Show You How to Check Your Tax Code: It's a question that likely pops into every UK employee's mind at some point: "Am I paying the right amount of tax?" This blog will delve into what is often an overlooked subject, and explain what tax codes are, how they work, and how a simple check could mean a nice tax refund. Accountants Chester Help You Understand Your Tax Code: It's Not as Scary as It Seems. Your tax code is a combination of numbers and letters found on your payslip or P45 form. This code dictates how much of your income is tax-free (this is your Personal Allowance) and at what rate your remaining earnings are taxed. The most common tax code for the 2024/25 tax year is 1257L. Accountants Chester Break Down the Standard 1257L Tax Code: • Numbers (1257): Represents your Personal Allowance, the amount of income you can earn in a tax year before paying any tax. For 2024/25 the standard Personal Allowance is £12,570. • Letter (L): The most common letter, 'L', is for those with no adjustments to their Personal Allowance. Other letters you might see include: o T: Your Personal Allowance includes other calculations o M: Marriage allowance transfer (you've transferred some allowance to your spouse) o N: Marriage allowance received (your spouse transferred some allowance to you)... A Chester tax blog by Accountants Chester | Phillips & Co | Accountancy & Tax.