With the new tax year approaching, workers are being urged to check their payslips carefully as changes from HM Revenue & Customs (HMRC) take effect on April 6.
Experts say millions of employees may unknowingly be paying the wrong amount of tax due to payroll errors or incorrect tax codes – problems that can quietly drain household finances over time.
At a time when many households are already grappling with rising living costs, even a small error in pay or deductions can quickly create financial strain.
Many workers rarely check their payslips
Despite how important accurate pay is, many employees admit they don’t routinely review their payslips.
Research by HR and payroll platform HBHR found nearly half of UK workers either skim through their payslip or rarely check it in detail.
This leaves significant room for mistakes to go unnoticed. According to the same survey of 2,000 employees, almost a quarter (23%) said they had spotted a mistake on their payslip in the past year.
Payroll problems are not always minor. The research found that:
- 32% of workers say they couldn’t cope financially if their main pay was wrong or late even once
- 24% say payroll errors have made it harder to afford essentials such as rent, mortgage payments, food or energy bills
- 20% say a mistake in their pay caused them to miss a bill or regular payment
The impact is even more pronounced in high-cost areas such as London, where over a third of workers said a payroll mistake had left them unable to cover a bill.
Less than 30 days left until Making Tax Digital! ⏳
If your combined turnover from self-employment and property is over £50,000, you’ll need to use recognised software and send quarterly updates from 6 April.
Act now – sign up and prepare. ⬇️ https://t.co/T6Jyo2fDzx pic.twitter.com/ihNX4riCKp
— HM Revenue & Customs (@HMRCgovuk) March 12, 2026
Incorrect tax codes costing billions
Beyond simple payroll errors, incorrect tax codes are another major issue affecting employees.
Analysis cited by accounting firm The Accountancy Partnership suggests that around 5.6 million UK workers overpaid tax during the 2023–24 tax year, with an estimated £3.5 billion paid in excess due to incorrect tax codes.
Tax codes determine how much income tax is deducted from wages through the PAYE system operated by HM Revenue & Customs. If the information HMRC holds about a worker’s circumstances is incorrect or outdated, the tax code may also be wrong.
Lee Murphy, managing director at The Accountancy Partnership, said many workers assume automated tax deductions are always accurate.
“Many people assume that because tax is deducted automatically through PAYE, the amount must be correct,” he said.
“But tax codes are based on the information HMRC has about your circumstances, and if that information is outdated or incorrect, you could end up paying too much tax without realising it.”
Why tax codes can change
Tax codes are regularly updated to reflect a person’s circumstances, and sometimes these changes happen without workers noticing.
Common triggers include:
- starting a new job
- having multiple jobs or sources of income
- receiving workplace benefits such as a company car or private healthcare
- HMRC adjusting the code to recover tax owed from previous years
If HMRC’s records don’t fully reflect a person’s situation, the code issued could lead to the wrong amount of tax being deducted each month.
Recommended reading:
What workers should look for
Experts say checking a payslip only takes a few minutes but could prevent costly mistakes from continuing for months.
Workers should review:
- the tax code listed on their payslip
- their gross pay and deductions
- whether any unexpected changes appear between payslips
Employees can also confirm their tax code through their HMRC personal tax account or by contacting their employer’s payroll department.
A timely reminder before the new tax year
With payroll and tax changes coming into effect in April, specialists say now is a good moment for workers to review their pay information.
Even small tax code errors can add up significantly over time – and in the current cost-of-living environment, making sure your payslip is accurate could help prevent unnecessary financial pressure.
