News

With the 2022/23 tax year nearly upon us, HM Revenue & Customs (HMRC) have started to send out 2022/23 PAYE codes which tell employers and pension companies how much tax to deduct from salaries and pensions for the 12 months commencing 6 April 2022.

The standard personal allowance, which is the amount of taxable income that can be received before any Income Tax is due, remains at £12,570.  Therefore, the majority of PAYE codes being issued for 2022/23 will be 1257L.

Your PAYE code may not be the standard amount of 1257L if you receive any taxable benefits from your employment, such as medical insurance, or are in receipt of taxable State Benefits, such as a State Pension.  It may also be different if you owe tax from a previous year which is being collected through your PAYE code for a later tax year.

It is important that you check your 2022/23 PAYE code once this arrives to make sure it is correct as HMRC have been known to wrongly carry forward historic items from previous years.

If you are unsure whether or not your 2022/23 PAYE code is correct, please get in touch with a member of our tax team who will be happy to help you.  We have offices located in Dalston, Dumfries, Penrith and Workington.