Martin Lewis issues tax code warning to millions of workers

Martin Lewis urges Britons to check tax code as 'millions are incorrect'BBC, The Martin Lewis Podcast

Transcript

00:00Do you know what your tax code is? If you're an employee, you need to, because millions of them

00:05are wrong each year. And if they are wrong, legally, it's your responsibility, not your

00:12employers, and not HMRCs, to ensure that it's correct. Now, a typical tax code is 1257L.

00:22Take those numbers, the 1257, add a zero to the end, so you've now got £12,570. That's

00:30how many pounds you can earn each year before you have to start paying income tax. So that's

00:35a standard tax-free allowance of £12,570 a year. The L, or the letter, is the different

00:43category of tax that you're in. Now, I say millions of them are wrong, and they are. And

00:48think about the impact of that.