All posts by Terry Harris

National Insurance

Apply for or locate a National Insurance number

Dec 5, 2024 by Terry Harris 0 Comments

If you have lost or forgotten your National Insurance number, there are several ways to retrieve it.

You can find your National Insurance number:

  • On a document you already possess, such as a P60, payslip, or letters regarding benefits.
  • In your personal tax account.
  • In the HMRC app.
  • In your Apple or Google Wallet (if you have previously saved it there).

You can also download a letter showing your National Insurance number through your personal tax account or the HMRC app.

If you are still unable to find your National Insurance number, you can request it online, submit a written request to HMRC using form CA5403 or contact HMRC by phone. Teenagers will usually receive a letter with their National Insurance number just before turning 16.

If you have never been issued a National Insurance number, you can apply for one, provided you meet the eligibility criteria.

Source:HM Revenue & Customs | 02-12-2024
Income Tax

How to interpret your tax code

Dec 5, 2024 by Terry Harris 0 Comments

The letters in your tax code indicate whether you are entitled to the annual tax-free personal allowance. These codes are updated each year and help employers calculate how much tax should be deducted from your salary.

For the current and upcoming tax year, the basic personal allowance is £12,570. The tax code corresponding to this amount is 1257L, which is the most common tax code used for those with a single job, no untaxed income, and no unpaid tax or taxable benefits (such as a company car).

Your tax code might include various other letters and numbers. For instance, letters like "M" indicate that an employee is claiming the marriage allowance, or "S" shows that Scottish income tax rates apply. If your tax code numbers change, it often means your personal allowance has been reduced.

There are also emergency tax codes (W1 or M1), which are used when a new employee does not have a P45. These codes calculate tax based on the current pay period.

If your tax code starts with a 'K', this means deductions for company benefits, state pension, or previous tax owed, exceed your personal allowance. However, the tax deduction for any pay period cannot exceed half of your pre-tax salary or pension.

It is essential to verify your tax code to ensure the correct information is being applied. If you have any questions, we are here to help.

Source:HM Revenue & Customs | 02-12-2024