BOSS: The Emergency Tax Escape
Lesson 16 of 16 in our free Work, Payslips & Tax guide: a 5-minute money game with the key points below.
Shown for England. Some rules here are different in Scotland, Wales and Northern Ireland: the lesson shows your nation's version.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Work, Payslips & Tax is free for everyone.
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Questions you'll answer
Twist: Mo graduated in England and is on Plan 5, earning £28,000 a year. Plan 5 repays 9% above £25,000. How much is repaid per year?
Mo (22, earning £18,000) is auto-enrolled into a workplace pension. Minimum employee contribution is 5% of qualifying earnings (pay between £6,240 and £50,270). How much per year?
Final twist: Mo has two jobs (£9,000 + £5,000 a year), a BR code on the second, and an emergency 0T code on the first. Which statement is TRUE?
Quick facts
- Red flag: “Dear Customer,” — HMRC usually uses your name — 'Dear Customer' is classic phishing.
- Red flag: “Our records show you were placed on an emergency tax code this year.” — Uses something true-sounding to hook you. Scammers know emergency tax is common.
- Red flag: “To release your refund, confirm your Government Gateway user ID and password below.” — Never share your login. HMRC will never ask for your password.
- Red flag: “Refunds not claimed in 48 hours are returned to the Treasury.” — Fake deadline to rush you.