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If you're an employee, check your tax

17 April 2007

The Inland Revenue produce an instruction to your employer called a "Notice of Coding", which is used as the basis for making deductions from your pay. You'll receive a copy with an explanation of the calculations. Examine it carefully. If you don't receive one each year, remember to ask for it to be sent to you.

If your deductions are not being made on the basis of a correct Notice of Coding, it is possible that your employer is deducting more tax than necessary. Check this with your tax office and ask for the appropriate form so that you can apply for a correct coding.

If you have a company car and your employer pays for any of your private petrol, check the current fuel scale charges. You may find changing to a car with a slightly smaller engine will save you a lot of tax – or you may even be better off paying for your own petrol in exchange for a pay rise equal to what your employer is currently paying you for your petrol.

Next: Use your capital gains tax allowance

If your deductions are not being made on the basis of a correct Notice of Coding, it is possible that your employer is deducting more tax than necessary. Check this with your tax office and ask for the appropriate form so that you can apply for a correct coding.

If you have a company car and your employer pays for any of your private petrol, check the current fuel scale charges. You may find changing to a car with a slightly smaller engine will save you a lot of tax – or you may even be better off paying for your own petrol in exchange for a pay rise equal to what your employer is currently paying you for your petrol.

Next: Participate in share incentive plans" name="text" />

If your deductions are not being made on the basis of a correct Notice of Coding, it is possible that your employer is deducting more tax than necessary. Check this with your tax office and ask for the appropriate form so that you can apply for a correct coding.

If you have a company car and your employer pays for any of your private petrol, check the current fuel scale charges. You may find changing to a car with a slightly smaller engine will save you a lot of tax – or you may even be better off paying for your own petrol in exchange for a pay rise equal to what your employer is currently paying you for your petrol.

Next: Participate in share incentive plans" name="text" />

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