Why do tax codes get updated?
Your tax code may get updated for multiple reasons:
you start to get income from an additional job or pension
you start or stop getting benefits from your job (for eg a company car)
you get taxable state benefits
you claim Marriage Allowance
you claim expenses that you get tax relief on
Or you may also be put on an emergency tax code if you change jobs.
Only HMRC can change or update your tax code. This isn't something you can change yourself, or ask Onfolk/your employer to change on your behalf.
How do I find out if my tax code has been changed or updated?
HMRC will issue a notification to notify you and your employer of your tax code change. It is likely you'll receive a paper letter from HMRC to your personal address if your tax code is updated.
Your employer will also get notified - if they've automated tax notices with Onfolk, this will be updated for your automatically. You won't have to do anything to let us know of the change.
A tax code change can happen throughout the tax year, but the most common time this happens is at the start of every tax year.
If you don't understand or don't agree with a tax code change, the best thing to do is to get in touch with HMRC directly.
How to update your tax code in Onfolk
You won't be able to update your tax code yourself in Onfolk - you'll need your employer to do this for you.
If your employer has automated tax notices with Onfolk, your tax code will automatically be updated for you - you don't need to do anything.
If you're unsure, let your manager/employer know your tax code has changed and send them a photo of your HMRC letter. They'll then be able to update this for you.
How long does it take for my tax code to update?
If your employer has automated tax notices, your tax code will get updated as soon as HMRC notifies Onfolk. This then gets updated in payroll along with any changes to how your taxpayer rate is calculated.
If tax notices aren't automated, your tax code will get updated as soon as your employer updates it in your profile. Onfolk will then automatically calculate your tax and any changes to it.
Do I recoup extra tax paid if my tax code got updated late?
Yes. In the event your tax code means you pay less tax and the change happens within the tax year, you'll likely receive a tax rebate through payroll. If your tax code changes in the last month of the tax year, you might receive this outside of payroll.