Martin Lewis reminds Britons of ‘legal responsibility’ as woman gets £2,585 tax refund | Personal Finance | Finance

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Financial journalist Martin Lewis reminded Britons of the importance of checking their tax codes during ITV’s The Martin Lewis Money Show Live on Tuesday after a viewer named David emailed in to thank the Money Saving Expert founder for his tips.

After watching November’s show, David’s wife found she had been on the wrong tax code for four years and after reaching out to HMRC, she was repaid £2,585.

Mr Lewis told viewers: “If you’re an employee or you’re getting a pension, you will be sent a tax code. The standard one is 1257L.”

However, he stressed: “What you have to understand, even if you don’t know what the number means, is it is your legal responsibility to check that that is correct. It is not your employer, it is not the tax office – it’s yours.”

Mr Lewis continued: “If it’s wrong, you might be overpaying tax and you could get a refund, which is great. Or, you could be underpaying tax, in which case they’ll come and say ‘you owe us money’, and when the tax office wants money, you have to pay the tax office money.”

READ MORE: Pensioner gets refund of £1,132 thanks to Martin Lewis tip

Most people who pay tax in the UK are entitled to a personal allowance and for 2022/23, this is typically 1257L, as per Mr Lewis’ insight.

This generally means the first £12,570 of a person’s earnings are free from income tax. However, the code can go up or down depending on a person’s circumstances due to things like tax underpayments.

This makes it important for people to clarify their code with HMRC to ensure they’re paying correctly. People can use an aforementioned tool to do this, such as Money Saving Expert’s income tax calculator.

There are also ways people can legally make savings through their tax code. Certain expenditures can qualify for tax relief, so it’s important for Britons to also run checks to be sure they’re claiming correctly whenever possible.

READ MORE: Martin Lewis urges energy customers to act as ‘crucial’ deadline looms

To be eligible, one partner must earn below the personal allowance threshold of £12,570.

The Marriage Allowance tax relief lets one partner transfer £1,260 of their Personal Allowance to the higher-earning wife, husband, or civil partner. This can then reduce their tax by up to £252 in the tax year (April 6 to April 5 of the next year).

People can find out more about other forms of tax relief they may be able to claim here.

The Martin Lewis Money Show Live continues next week on ITV at 8pm.

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