Between January and March, 25 million new coding notices will be issued for 2010/2011.
These tax codes will be updating each individuals tax allowances and relief based upon what they should be entitled to.
This year, due to a shift to a new computer system for processing PAYE, there is cause to be extra vigilent when checking that you are on the correct tax code.
People affected are those who have left a job in the last few years. The new system is combining data for old jobs and coming to the conclusion that the individual has 2 (or more) jobs in this tax year - automatically subjecting them to a tax code for higher earners.
Personal allowances in this instance may be reduced or removed from the actual job the individual is employed within. If the entire personal allowance (under 65's) is removed, that means an additional £6,475 is taxable in error.
This mean an extra £108 deducted from your gross wage per month.
If you receive a possible incorrect tax code, check it with our tax calculator
to see if there are any discrepancies.