HM Revenue and Customs (HMRC) has issued a warning that up to one million people in the UK each year fail to claim back overpaid tax. In a post on social media platform X, HMRC urged individuals to use its app to check if they are owed money. The post stated: “Could you be one of the million missing out on a tax refund? Log onto the HMRC app to easily manage your money and claim any tax you’re owed. Download today.”
How HMRC Notifies You of Overpaid Tax
According to the GOV.UK website, HMRC typically contacts taxpayers if they have overpaid or underpaid tax by the end of the tax year (5 April). Taxpayers may receive either a tax calculation letter (known as a P800) or a Simple Assessment letter. These letters explain how to obtain a refund or pay any tax owed. However, letters are only sent to employed individuals or pension recipients. Those registered for Self Assessment will have their bill adjusted automatically and will not receive a P800 or Simple Assessment letter. The letters are usually issued between June and March of the following tax year.
Reasons for Overpaying Tax
Tax overpayment can occur for several reasons, including being placed on the wrong tax code due to incorrect income information, starting a new job while still being paid by a previous employer in the same month, beginning to receive a workplace pension, or receiving Employment and Support Allowance or Jobseeker’s Allowance. If individuals believe they have paid too much tax and have not received a tax calculation letter, they should claim a refund online via the HMRC website or app, or by calling 0300 200 3300.
Using the HMRC App
The HMRC app offers a range of features beyond checking for tax refunds. Users can get an estimate of tax owed, make Self Assessment or Simple Assessment payments, set reminders for Self Assessment payments, access Help to Save accounts, use a tax calculator to determine take-home pay after Income Tax and National Insurance deductions, track forms and letters sent to HMRC, ask HMRC’s digital assistant for help, update personal details, save their National Insurance number to a digital wallet, check for gaps in National Insurance contributions, and choose electronic communication instead of postal mail.
To access the app, users need to sign in with their Government Gateway user ID and password. Those without a user ID can create one directly through the app. HMRC’s initiative aims to simplify the process of reclaiming overpaid tax and encourage more people to take advantage of the refunds they are entitled to.
