Martin Lewis issues warning to Brits who never open their payslips
Topics: Money, Martin Lewis
Kya Buller
Featured Image Credit: ITV/Yau Ming Low/Getty Images
Topics: Money, Martin Lewis
Where else is there to turn to In the middle of a cost-of-living crisis other than Martin Lewis?
He’s a modern-day idol, coming to our rescue time and time again while times are tough.
The MoneySavingExpert.com founder, who also works as a presenter for ITV, has given us advice on everything from electricity bills to securing the cheapest flights.
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Lewis never shies away from helping the working classes get what they’re owed.
This time, he’s offering his help when it comes to checking our payslips and making sure we’re not being fleeced.
He has urged everyone to check their tax code, which is integral to ensure you’re getting paid the right wage.
Lewis first offered this advice back in February, but as wages fluctuate all the time, it’s still stellar advice worth paying attention to.
Plus, when it comes to your tax code, it’s purely your responsibility.
He said on the BBC Radio 5 Live Podcast: “You need to know your tax code and what it means, it's your legal responsibility - not your employers and not HMRC’s.
"Millions are wrong. Millions are overpaying. Millions are underpaying.
"It all causes a nightmare, so make sure you know what your tax code is and check that it's right."
A listener, Sue, contacted the podcast to say that as somebody who teaches accounting, ‘the number [of people] who didn't have a clue if they were paying the right tax at work was worrying'.
With Martin’s advice - we can all aim to know more about our tax codes.
This code lets the government know how much to tax you and take off your earnings.
The most popular is 1257L, used for most people with one job or pension.
This is usually right and requires no further action.
But if your code is followed by W1, M1, or X, you are likely to be paying emergency tax rates, which is potentially way too much - and you’ll be liable for a refund.
Tax codes with ‘K’ at the start means you have income that is not being taxed another way and it’s worth more than your tax-free allowance.
For many, this occurs when you’re paying tax you owe from a previous year through your wages or pension, or getting benefits you need to pay tax on - like state benefits or company benefits.
Check your tax code on Gov.uk and make sure you’re enjoying as much of your wage as possible!