Making sure that you pay the right amount of tax is very important. You want to ensure that you are paying the right amount for a selection of reasons.
If you are not paying enough tax, then you may be fined and this could be very high. If your employer takes out your tax before you get paid, then it is likely that you are paying the right amount, although it is worth checking. If you are self employed, then you will need to file as self assessment tax return to make sure that you declare the money coming in to your business and the money coming out so that the right amount of tax can be charged to you. It is also important to make sure that you are paying any tax due on money made form investments, rental income from someone staying in your house or a property that you own and other sources of income. It is worth thinking about whether you are paying tax on everything that you should be. If you feel you are not, then get in touch with your local tax office and they will discuss the details with you.
Equally important, or perhaps more so, is to make sure that you are not paying too much tax. When you first start work, you will be put on a temporary tax code, which is normally too high. It is very important to get in touch with the tax office to make sure that you are paying the right amount. If you situation changes, with regards to your earnings, then it is important to let them know again, so that your tax code is adjusted.
So if you are not paying enough tax, you could face a hefty fine and will have to repay what you owe. If you are paying too much, then you are losing out on money that is rightfully yours. It is therefore very important that you check and make sure that amount of tax that you are paying on every source of income is correct. If you have any doubts, then contact your local tax office and they should be able to help you out and take a look at your circumstances and calculate what you should be paying. If you have been overpaying, they will either charge you less tax for a while or give you a lump sum.