HMRC is currently dispatching approximately four million tax refund notifications from June to August. If you have overpaid Income Tax, you may receive a P800 letter in the mail.
This process not only affects employees under the PAYE system but also impacts pensioners who have paid excessive taxes. Overpaying taxes can happen due to various reasons, with the most common being an incorrect tax code assignment.
For individuals with one job or pension, the prevalent tax code for the current tax year is 1257L. This code signifies a personal allowance of £12,570 before tax deductions.
If you want to claim back overpaid tax, feel free to share your experiences with us at mirror.money.saving@mirror.co.uk. Additionally, for the latest HMRC updates and financial guidance, join The Mirror’s Money WhatsApp community to receive news and money-saving tips directly on your phone.
Different tax codes exist for specific circumstances. For instance, individuals with a second job typically have BR, D0, or D1 tax codes, while those without a personal allowance may have an 0T tax code.
To find your tax code, refer to your recent payslip, P45 (if applicable), or visit GOV.UK with your Government Gateway ID. Always beware of scammers impersonating HMRC; genuine HMRC communications are typically sent via letters rather than texts, emails, or calls.
If you are owed a tax refund, HMRC will either notify you via text or prompt you to claim online through an official GOV.UK page. To claim, you will need the reference number from your P800 letter and your National Insurance number. In cases of prolonged incorrect tax codes, you can potentially reclaim taxes for up to four previous years.
Under specific conditions, HMRC may reimburse taxes beyond four years, especially if the overpayment was due to their error. However, if you underpaid due to an incorrect tax code, you will be required to repay the shortfall.
It’s crucial to address tax discrepancies promptly to avoid larger bills later on. While seeking write-offs for underpayments is possible in some cases, it is not guaranteed.
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