HMRC is encouraging numerous taxpayers to verify if they are eligible for a tax refund, with the average refund amounting to £473.
One common reason for potential overpayment of tax is being assigned the incorrect tax code, especially after a job change. The prevalent tax code for the current tax year is 1257L, applicable to individuals with a single job or pension, allowing an annual tax-free threshold of £12,570.
Various factors could lead to overpaid tax, such as incorrect splitting of personal allowance for individuals with multiple jobs or errors in pension income taxation.
HMRC projected sending approximately four million P800 tax refund notifications from June to August. A recent communication from HMRC, posted on social media platform X, now prompts individuals to ascertain if they have unclaimed refunds.
To check for potential tax refunds, individuals can locate their tax code on their latest payslip, P45 (if applicable), or on the GOV.UK website with a Government Gateway ID. This unique 12-digit identifier grants access to online UK government services.
If owed a refund, individuals can claim it online through GOV.UK using the reference number from the P800 letter and their National Insurance number. Claims for overpaid tax can be made for up to four previous tax years if the tax code has been erroneously set. HMRC may extend refunds beyond four years in specific cases, such as their responsibility for the overpayment.
MoneySavingExpert.com has cautioned the public about potential scammers impersonating HMRC. They emphasized that HMRC communicates about owed tax solely through letters and does not initiate contact via text, email, or phone calls.
