People could be owed money from HMRC after paying too much tax, as the government body has issued a new alert online. Some Brits could be owed an average of £473 if they claim what is theirs, unlike thousands who ‘ignore the important notice’.
A tax refund happens when you pay more income tax to HMRC than you actually owe for a financial year. It is also called a tax rebate and is often due to an overpayment under the PAYE (Pay as you Earn) system.
Common reasons people might be owed money by HMRC include being on the wrong tax code, changing jobs, having gaps in employment, or claiming tax relief for work-related expenses. Regardless of the reason, people are entitled to get back any excess money they gave to the government.
In a post on X, HMRC said: “Remember getting a letter about a tax refund but didn’t do anything about it? Last year, almost one million people didn’t claim back the money they’re owed.”
The government account added that, on average, people who claimed their tax refund were entitled to £473. This may not be the case for everyone, though, as situations vary from person to person.
HMRC usually sends an automatic refund if they spot an overpayment during their end-of-year review. This happens at the beginning of April once the current tax year has ended.
People who suspect they may be overpaying tax can check for themselves by using the ‘how to claim a tax refund’ tool on the GOV.UK website. Brits should be able to use the HMRC app for this process as well.
If your claim is found to be correct, people can backdate any long-standing errors for up to four tax years, meaning from April 2026 people could claim as far back as April 2022.
What is the process of checking?
The tool allows people to check whether they have been overpaying tax via a number of routes, such as wages from a job, the pension system, and self-assessment for those who are self-employed. People need to know when they have paid the tax that they believe is too high and have their Tax Calculation Letter (known as a P800) to hand.
If HMRC has not issued a letter, contact them and explain why you think you’ve paid too much tax. HMRC will tell you if you’re due a refund. If not, they will also tell you why the tax you have paid is correct.
HMRC refunds are usually issued within three weeks, the website claims. In other news, HMRC could be sending early £179.80 payments to households in May.
Child Benefit can be claimed by parents or guardians who are responsible for raising a child under the age of 16, or under 20 if they stay in approved education or training. Payments are issued by HMRC to claimants every four weeks on either a Monday or a Tuesday, but normal payments will be disrupted in May due to two bank holidays.