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Help! I've been given the wrong code and the taxman keeps raiding my pay cheque

Published: 05:35 EST, 2 May 2013 | Updated: 10:20 EST, 28 August 2013

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I'm working at McDonalds, but the tax code that I have been allocated is BR, which causes a huge deduction on my paycheck.

I read online that this code is used for someone who has more than one job, but I only have one. Is that tax code correct for me and, if not, what can I do to change it? JR

McDonalds: Employee believes he may have been tax too much by HMRC. How to check your tax code.

Patrick O'Brien, of HMRC, adds: The code 'BR', is used when all income is taxed at the basic rate - currently 20 per cent, most commonly used for a second job or pension.

You should contact HMRC as soon as possible on 0845 300 0627 so we can correct your code and get any tax they have overpaid back to you.

Any overpaid tax for 2012/13 tax year will be repaid as part of our annual end of year reconciliation process. Please visit the HMRC site for a list of tax codes and what they mean.

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Lyndsey Beckett, of Ilyas Patel Accountants, says: A tax code is used by HMRC to ensure that employees are paying the correct amount of tax on their employment income.

The default tax code for 2013-2014 is 944L which allows an individual to earn £9,440 tax free. This allowance is spread evenly over the year so you will still get taxed each month if you earn over £786 in that month.

A tax code may change for a number of reasons. For example, an individual has previously underpaid tax, there are allowable expenses against their employment income, they receive taxable benefits (car, medical cover etc.), as well as many other reasons.

If you are ever unsure that you are on the correct code, you should contact HMRC immediately or seek advice from your accountant.

The BR code as you rightly point out is usually used for someone who has more than one job. This code means that the individual receives no tax free income from that employment.

You have perhaps been assigned a BR tax code if you are new in your job, as the BR tax code is sometimes used by an employer when they do not yet know the tax position of a new employee.

To avoid this, individuals should always ensure they give their P45 from their most recent employment to their new employer as soon as possible. The P45 will show the employer what tax code they should be using for the new employee. If this is not possible, the new employee should be asked to complete a P46. This will allow the employer to put them on the most suitable tax code until they are issued the correct one by HMRC.

If an individual has been put on an incorrect tax code and this is subsequently changed, they will get the refund back automatically through their wages unless it did not get amended before the end of the tax year. In this case you may need to go directly to HMRC to get your refund.

If you have been on tax code BR for a while, then you should contact HMRC as you may be due a refund.

Amy Andrew, of This is Money, adds: It is important that you know how to check and challenge your tax code.

Those most at risk of getting the wrong tax code are those with benefits from their employer such as cars or medical insurances, as these benefits are potentially being taxed twice, or if you have changed jobs recently.

Use This is Money's guide to find out how to decode your code and read the HMRC charter on what it should do to help if things go wrong.