Tax Tips for Employees
  • Check your tax code - Your tax code should be - 543L. Your code would only usually be lower if your company provide you with any benefits (i.e. Car, Medical Insurance etc.), or if you have underpaid tax from previous years.

  • Keep all your tax related paperwork i.e. Change of tax code forms, End of Year P60 and P11D, and your P45 if you change Jobs (your new employer will need your P45 when you start a new job).

  • If you have children living with you may be entitled to Children's Tax Credit.

  • Company Cars can really hammer your tax allowances and leave you with a lot less money in your pocket, the Fixed Profit Car Scheme lets your employer pay you to run your own car. The rate per mile is 40p for the first 10,000 miles and 25p per mile thereafter.

  • Mileage Allowances can be set against tax on your tax return at full Fixed Profit Car Scheme rates even if your employer pays mileage at a lower rate. Alternatively the business proportion of the actual costs can be calculated, including some Capital Allowances (depreciation). Even some interest can be claimed on a car loan - see booklet IR125 available from the Inland Revenue website.

  • If tax has been deducted on Emergency Tax Code or at Basic Rate there is a fair chance that you could be due for a tax rebate at the end of the year(unless you have more than one job at a time).