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ONE IN THREE BRITS HAS BEEN ON THE WRONG TAX CODE AT SOME POINT, WITH AVERAGE OVERPAYMENTS HITTING A HEFTY £689, ACCORDING TO RESEARCH BY CANADA LIFE. 14:01, 03 Jun 2025 A HMRC warning has
been issued for workers to check codes on letters as workers are owed £700 each. One in three Brits has been on the wrong tax code at some point, with average overpayments hitting a hefty
£689, according to research by Canada Life. Taxpayers should double check the ‘final tax code’ on their P60 that’s the string of letters and numbers near the top of the form. Codes like
"BR", "D0", or "D1" should raise a red flag. HMRC will usually update your tax code. However, in certain circumstances, they don’t have all the necessary
information and, as a result, might put you on the wrong tax code. READ MORE UK FACES 'SPANISH SCORCHER' HEATWAVE WITH 31C AS EXACT DATE IT STARTS ANNOUNCED This confusion might be
more common than you realise. Canada Life found that only 38% of people were certain they were on the right tax code and 43% who checked their code found that they were on the wrong one.
Article continues below 71% of those on the wrong tax code were paying more than they should be which often happens when you start accessing your pensions for the first time. Milsted Langdon
advises: "It’s your responsibility to check your tax code is correct and there are several ways to do this. HMRC should notify you if your tax code changes, and if you’re drawing from
a pension, you’ll receive a P60, or “end of year certificate”, from your pension provider. "Your P60 should have details about your tax code and what tax you paid on your pension income
in that tax year. Alternatively, you can contact HMRC directly and ask them about your tax code if you’re unsure. They will update your tax code, so you pay the correct amount moving
forward. Article continues below "If you’re on the wrong tax code and have overpaid, you may need to claim a refund. Normally, any overpaid tax will be returned through a tax code
adjustment, meaning you pay less in the future. However, if you overpaid in previous years, you might receive a cheque in the post instead. "It may be beneficial to double-check your
tax codes regularly to ensure that you’re not paying more than you should." You can call HMRC, the Labour Party government's tax arm, on 0300 200 3300 or write to: Pay As You Earn
and Self Assessment, HMRC, BX9 1AS.