Home Coverage Viral Buzz 06

3 Urgent HMRC Warnings To Christmas Workers: Stop Overpaying Tax And Avoid Scams In 2025

• minute read
Contents
The festive season brings a surge in temporary and seasonal jobs, but HM Revenue and Customs (HMRC) has issued a critical warning to all Christmas workers in 2025: check your payslips immediately. This annual advisory is more important than ever, as new starters and temporary staff across retail, hospitality, and logistics sectors are particularly vulnerable to payroll errors that can lead to significant overpayment of tax or underpayment of wages. Do not wait until the New Year to address discrepancies; taking action now can ensure you keep the maximum amount of your hard-earned Christmas earnings. The core of the HMRC message, reiterated this December 2025, is a proactive 'Check Your Pay' campaign designed to protect temporary employees from common payroll pitfalls. These issues often stem from the complexities of transitioning between jobs, having multiple employers, or simply being placed on an incorrect tax code due to incomplete starter information. Understanding the three main threats—incorrect tax codes, National Minimum Wage breaches, and sophisticated tax scams—is the first step to securing your finances this holiday season.

The Critical Threat: Why Seasonal Workers Overpay Tax

The single most common financial pitfall for temporary and seasonal staff is being placed on an incorrect tax code, which almost always results in paying too much tax. This issue is highly prevalent for those taking on a second job, students, or anyone starting work without a P45 from a previous employer.

The Emergency Tax Code Trap

When you start a new job, your employer needs to know your tax status to apply the correct PAYE (Pay As You Earn) deductions. If you fail to provide a P45—the form detailing your tax and pay from your last job—your employer is required to use the HMRC ‘starter checklist’ and, in many cases, will apply an Emergency Tax Code. * What it looks like: An emergency tax code typically includes the number of the standard Personal Allowance (e.g., 1257L) followed by a W1, M1, or X suffix. * The problem: The W1/M1/X suffix means your tax is calculated on a 'non-cumulative' or monthly/weekly basis, rather than annually. This effectively denies you the benefit of your full Personal Allowance in that pay period, leading to an excessive amount of tax being deducted upfront. * The result: You are likely to see a much smaller take-home pay than expected, with a large chunk going to HMRC unnecessarily. While you will get this money back eventually (usually after the end of the tax year), fixing it now means the money stays in your pocket for Christmas.

How to Fix an Emergency Tax Code Immediately

The process for correcting an emergency tax code is straightforward and should be done as soon as you receive your first payslip. 1. Provide Your P45: If you have a P45 from a previous job, give it to your new Christmas employer immediately. This form contains all the necessary details for them to apply the correct tax code. 2. Complete the Starter Checklist: If you do not have a P45, you must complete the HMRC 'starter checklist' (which replaced the old P46 form). This form asks three key questions about your current employment status, allowing your employer to apply a more accurate tax code. 3. Check Your Personal Tax Account: The fastest way to check and update your tax code is via your online Personal Tax Account on the GOV.UK website. You can see what tax code HMRC has on record and update your employment details directly. 4. Contact HMRC: If your employer cannot resolve the issue, call HMRC directly. They can issue a new, correct tax code to your employer.

The Second Warning: National Minimum Wage and Payslip Checks

HMRC's warning extends beyond tax to ensure all seasonal staff are being paid legally. The agency is urging workers to verify they are receiving at least the current National Minimum Wage (NMW) or National Living Wage (NLW), depending on their age. The complexity of seasonal work, which often involves varying shifts, contracted hours, and different rates of pay, can inadvertently lead to underpayment.

Key Payslip Checks to Perform

* Hourly Rate: Verify that your stated hourly rate meets or exceeds the current NMW/NLW for your age bracket. * Hours Worked: Ensure the number of hours you are paid for exactly matches the hours you worked, accounting for any unpaid breaks. * Deductions: Scrutinise all deductions. Aside from PAYE tax and National Insurance Contributions (NICs), there should be no deductions that push your effective pay below the minimum wage threshold.

What to Do If You Are Paid Less Than Minimum Wage

Underpaying the NMW/NLW is illegal, and HMRC is responsible for enforcing this legislation. If you find a discrepancy on your payslip regarding your hourly rate or total pay, follow these steps: 1. Speak to Your Employer: Try to resolve the issue directly with your manager or the payroll department first. 2. Contact ACAS: If the issue is not resolved, the Advisory, Conciliation and Arbitration Service (ACAS) offers free, confidential advice via their helpline (0300 123 1100) to help resolve employment disputes. 3. Complain to HMRC: You can submit a formal complaint directly to HMRC via the GOV.UK website. HMRC will investigate the employer on your behalf. You must choose between complaining to HMRC or making a claim to an employment tribunal, as you cannot do both simultaneously.

The Third Threat: Tax Refund Scams Targeting Seasonal Workers

The festive and New Year period sees a significant spike in fraudulent activity, with scammers actively targeting individuals who have recently changed jobs or who might be expecting a tax rebate (often due to an emergency tax code). HMRC is issuing a strong warning to stay vigilant against sophisticated tax refund scams. Scammers exploit the confusion around temporary tax codes and the anticipation of a potential rebate to trick victims into handing over sensitive personal and financial information.

How to Spot a Fake HMRC Scam

The fraudulent communications typically arrive via email, text message (smishing), or phone call (vishing), and often use classic pressure tactics. * The Fake Refund Offer: This is the most common scam. You receive a message claiming you are due a tax refund and must click a link or provide bank details to process it. HMRC will never notify you of a tax refund via email, text message, or voicemail. * Urgent Debt Demand: Scammers may call or text demanding immediate payment of an unpaid tax bill, threatening arrest or prosecution if you do not pay instantly. HMRC will never use aggressive language or demand payment over the phone using methods like gift cards or bank transfers. * Suspicious Links: The message will contain a link that directs you to a highly convincing, but fake, GOV.UK website designed to harvest your login credentials, bank details, or National Insurance number.

Protect Yourself and Report Scams

Never click on links in suspicious emails or texts, and never give out personal information in response to an unsolicited call or message. * Forward Suspicious Emails: Send any suspicious HMRC-related emails to phishing@hmrc.gov.uk. * Forward Suspicious Texts: Send suspicious text messages to HMRC's dedicated anti-scam number, 60599. * Check Online: If you think you might genuinely be due a tax refund, log into your official Personal Tax Account on the GOV.UK website or call HMRC directly using a number from the official GOV.UK contact pages (not from the suspicious message). By being proactive about checking your payslips, understanding your tax code, and remaining vigilant against scams, you can ensure that your seasonal work pays off exactly as it should this December 2025.
3 Urgent HMRC Warnings to Christmas Workers: Stop Overpaying Tax and Avoid Scams in 2025
hmrc warning to christmas workers
hmrc warning to christmas workers

Detail Author:

  • Name : Gus Rodriguez
  • Username : kozey.albina
  • Email : paucek.fred@hyatt.com
  • Birthdate : 1988-09-26
  • Address : 9037 Edwardo Estates Apt. 243 Quigleytown, ID 04460
  • Phone : +1-779-913-7073
  • Company : Kuhic-Herman
  • Job : Health Educator
  • Bio : Vero odit nihil iure suscipit. Nesciunt sed velit laborum ea dolor cum aut. Doloribus reiciendis neque facere consectetur dolores nostrum repellendus. Eaque est et molestias facere et.

Socials

facebook:

linkedin:

Random Posts