Tax Code Dispute Letter to HMRC

Editable letter disputing an incorrect PAYE tax code. Six selectable grounds: wrong Personal Allowance, wrong BIK estimate, ghost employment from a prior job, prior-year-underpayment adjustment that does not exist, unjustified K code, or multiple-employment misallocation. Captures impact + requested action (review, reissue, refund). Online dispute via personal tax account is faster; this letter is for cases needing written submission or supporting documentation. DOCX, PDF, and on-page copyable text.

Last reviewed: 24 May 2026

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What it contains

Letter disputing an incorrect PAYE tax code. Six selectable grounds with template language: (1) wrong Personal Allowance; (2) wrong BIK estimate (P11D mismatch); (3) ghost employment from a job already left; (4) prior-year-underpayment adjustment that should not exist; (5) unjustified K code; (6) multiple-employment misallocation of PA. Includes impact summary + requested action (review / reissue / refund). Enclosure list suggesting payslip, P45, P60, P11D.

How to use it

Try the online dispute first

Personal tax account at gov.uk handles most disputes faster than letter. This template is for cases needing written submission, supporting documentation, or where the online dispute has stalled.

Identify the correct ground

Tick all that apply. Ground (3) ghost employment is the most common quick-win, HMRC's record often lags a P45 by months. Ground (5) K code is the most urgent because it produces immediate over-deduction.

Quantify the impact

State whether you are over-paid or under-paid, by approximately how much per month + year-to-date. This focuses HMRC's review on the financial consequence.

K-code hardship: also phone

For an unjustified K code causing immediate cash-flow pressure, phone HMRC PAYE 0300 200 3300 alongside sending this letter. Tax-code corrections via post can take weeks; the phone route is faster for hardship cases.

Copy the letter text

Prefer not to download? Copy the text below and paste into your own document.

[Your full name]
  [Your address]
  [Date]

  HM Revenue and Customs
  PAYE & Self Assessment
  BX9 1AS

  NI Number: [NI]
  UTR (if applicable): [UTR or "N/A"]

  Subject: Dispute of incorrect tax code [current code] for [tax year]

  Dear Sir or Madam,

  I am writing to dispute the tax code [current code] issued for tax year [YYYY/YY], which is producing incorrect PAYE deductions.

  My current details:
  - Employer / pension provider: [Employer name]
  - PAYE reference: [PAYE ref]
  - Current tax code: [current code]
  - Tax code start date: [date or "from 6 April YYYY"]
  - Expected / correct tax code: [expected code, e.g. 1257L]

  Why the current code is wrong (select all that apply; delete the rest before sending):

  [ ] Incorrect Personal Allowance
  The code [current code] gives a tax-free amount of GBP [X], but my correct tax-free amount should be GBP [12,570 or adjusted figure], reflecting [standard PA / Marriage Allowance transferee / transferor / Blind Person's Allowance / other].

  [ ] Incorrect benefits-in-kind estimate
  My P11D for [year] showed BIK of GBP [Y]. HMRC's estimate for the current year appears to be GBP [Z], which is incorrect because [benefit ceased / reduced / job change]. Correct expected BIK for [YYYY/YY] is GBP [correct amount].

  [ ] Ghost employment from prior job
  HMRC's record appears to still show me as employed by [previous employer, PAYE [ref]], which I left on [date]. P45 was issued on [date] (copy enclosed). Please remove this employment + issue an updated code reflecting only my current employment with [current employer].

  [ ] Prior-year underpayment adjustment where no underpayment exists
  The code [current code] includes a deduction for prior-year underpayment of GBP [A]. I do not have any prior-year underpayment because [reason]. Please review + remove this adjustment.

  [ ] K code (negative allowance) where none should apply
  The code starts with K (or includes a negative-allowance adjustment) producing an effective negative tax-free amount of GBP [B]. I do not have BIK, untaxed income, or prior-year adjustments justifying a K code.

  [ ] Multiple employments / pensions producing duplicated allowance issues
  I have [N] sources of PAYE income:
  - [Employer 1]: PAYE [ref], code [code]
  - [Employer 2 or pension]: PAYE [ref], code [code]
  Allocation is incorrect because [reason]. Please reallocate the Personal Allowance to [primary employment] with code 1257L, + issue BR / D0 / D1 / 0T codes to secondary sources as appropriate.

  Impact + requested action:
  Based on the incorrect code I have been [over-paid / under-paid] tax by approximately GBP [X] per month / year-to-date.

  I request that HMRC:
  1. Review my current code in light of the above.
  2. Issue an updated code reflecting my correct tax-free amount.
  3. Refund any over-paid tax (via subsequent payslip adjustment or direct refund).
  4. Confirm the correct expected liability for the tax year.

  If you require any further information (P45, P60, P11D copies), please contact me using the details below. Copies enclosed for the most relevant supporting documents.

  Yours faithfully,

  [Signature]
  [Printed name]
  [Phone]
  [Email]

  Enclosures: [list, e.g. "copy of latest payslip; P45 from previous employer; P60 for prior tax year"].

  Notes for the sender (delete before sending):
  - Online dispute via personal tax account is faster than letter.
  - For urgent K-code hardship, also phone HMRC PAYE 0300 200 3300.
  - Statute: Income Tax (PAYE) Regulations 2003 (SI 2003/2682); ITA 2007.