HMRC giving £900 to people with five-digit code on payslip this week

HMRC is handing £900 to everyone with a specific code on their payslip from Tuesday. A HMRC change will see £900 going back into your payslip from Tuesday after an announcement by Prime Minister Rishi Sunak earlier this year.

Rishi Sunak said via social media site X, which was formerly known as Twitter before the rebrand: “Pay day is coming. Our second National Insurance cut hits payslips tomorrow. It's worth £900 to someone earning the UK average salary.”

But in a community note, a clarification wrote: "When all tax changes are included, the average worker (on approx. £35k) will save only about £340 a year. If you earn less than £26k, you will be worse off."

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If you are earning the UK average salary, your tax code will be 1257L. If you have this code on your payslip, you will definitely get the extra money back in your payslip - at least £200 and up to £750, or an average of £450.

Taken with the previous cut in February, it takes the average extra money handed out in the National Insurance changes to £900.

The UK government guidance explains: "As a result of this measure, an average employee on £35,400 will receive a tax cut of over £450 per year from April 2024. An average self-employed person on £28,000 will see a tax cut of £310 a year and over 2 million individuals will benefit. Actual impacts for individual taxpayers will vary according to individual circumstances."

A Twitter user said: "It’s time for @CommunityNotes to destroy this little ******* and has fake promises once again.. Reject every single word he says, because they’re all lies." A second said: "Finally, a trickle while billionaires feast! £900 don't touch the sides for costs rising thousands. Fix rotten system making few rich, many poor. Real help lifts all - jobs, homes, NHS funding not tax cuts that benefit boardrooms alone. Poverty's pain no soundbite can ease."

"It’s £340 & £800 for top earners or should we leave it for the community notes, again?" another asked. Another said: "How many seconds does it take you to make £900? You’re the spokesman to help struggling people? No you seriously??? If you’re under the average salary. You’re be worse off. You should be ashamed of yourself"