Tax Codes

Your tax code represents the amount of money you can earn before you start paying tax. For the 2023-24 tax year most people working under PAYE will be on tax code 1257L. If you add a zero on the end of your tax code, this is the amount you can earn before paying tax, so for most people they can earn £12,570 per year before paying tax.

Why has my tax code changed?

After we submit your travel claim, HMRC may assume that you are going to carry on claiming the same mileage every year. Instead of paying you a lump sum at the end of the tax year, HMRC would rather allow you to pay less tax each time you get paid.

What's wrong with this?

The chances of you claiming exactly the same mileage every year are slim. If your mileage is lower this year than last year, you will not have paid enough tax and will need to pay a tax bill at the end of the tax year.

How can I solve this problem?

Let us know that your tax code has changed and we will get it corrected for you. It's all part of our aftercare service.