If you’ve been given an emergency tax code, you will miss out on the tax-free personal allowance of £11,500.
This means you’ll be taxed on all of your income, and will reduce you pay by more than is necessary. But how much extra will you pay?
- Basic-rate taxpayers (earning up to £45,000) will pay an extra £1,300 in the 2017-18 tax year
- Higher-rate taxpayers (earning up to £100,000) will pay an extra £4,600 in the 2017-18 tax year
Anyone earning more than £100,000 begins to steadily lose the personal allowance by £1 for every £2 they earn above that figure. At £123,000, the personal allowance is lost altogether.
If you have been placed on emergency tax, simply start the reclaim process through Tax Retriever and we will ensure that you get every penny of overpaid tax returned to you for the previous 4 tax years.