Millions of UK tax codes may be incorrect

Martin Lewis has issued an urgent warning about tax codes, saying that millions of them may be incorrect. This could cost individuals thousands of pounds. With a new tax year starting soon, Lewis urged people to check their tax codes now. During his recent show, "The Martin Lewis Money Show Live," he explained that a tax code tells employers or pension providers how much tax to deduct from earnings. For example, the common code 1275L means a person can earn £12,750 tax-free each year. However, Lewis noted that many of these codes are wrong. He emphasized that it is the responsibility of individuals to ensure their tax codes are correct. Lewis warned that this is the last chance for people to reclaim any overpaid taxes from the 2020/2021 tax year. He encouraged viewers to use online tax code calculators to verify their codes. Additionally, Lewis pointed out that while individuals can reclaim overpayments by a certain deadline, the government can pursue any unpaid taxes for a longer period. Therefore, it's essential for everyone to check their tax codes to avoid future problems.