HMRC Issues Urgent Call for Brits to Reclaim Overpaid Tax
HM Revenue and Customs (HMRC) has issued a stark reminder to the British public, urging individuals to verify if they have overpaid on their taxes and are entitled to refunds. The tax authority warns that as many as one million people each year neglect to claim back money they are owed, potentially leaving millions of pounds unclaimed.
How to Check and Claim Your Tax Refund
In a recent social media post on platform X, HMRC directed taxpayers to utilise its official app to assess their eligibility for refunds. The message stated: “Your tax refund could still be waiting. Last year, almost one million people didn’t claim back the money they’re owed. Download the HMRC app to check.”
According to information on the GOV.UK website, HMRC typically contacts individuals who have overpaid tax by the end of the tax year on 5 April. This communication comes in the form of either a tax calculation letter, known as a P800, or a Simple Assessment letter. These documents outline the steps to obtain a refund or settle any outstanding tax liabilities.
Who Receives These Letters and When?
Tax calculation or Simple Assessment letters are generally dispatched between June and March of the subsequent tax year. However, they are only issued to specific groups:
- Employed individuals
- Pension recipients
For those registered for Self Assessment, any adjustments for underpayment or overpayment are automated, meaning no such letters are sent.
Common Reasons for Overpayment
Several scenarios can lead to taxpayers overpaying and being eligible for refunds. Key reasons include:
- Being assigned an incorrect tax code due to erroneous income information held by HMRC
- Transitioning between jobs where payments overlap in the same month
- Commencing a workplace pension
- Receiving Employment and Support Allowance or Jobseeker’s Allowance
Steps to Claim a Refund
If you suspect you have overpaid tax and have not received a tax calculation letter, it is crucial to proactively claim a refund. This can be done through multiple channels:
- Online via the HMRC website
- Using the HMRC app
- By calling the dedicated helpline at 0300 200 3300
Features of the HMRC App
The HMRC app serves as a comprehensive tool beyond just checking for refunds. Users can leverage it for various tax-related tasks, such as:
- Estimating tax payments
- Making Self Assessment or Simple Assessment payments
- Setting reminders for Self Assessment deadlines
- Accessing Help to Save accounts
- Calculating take-home pay after Income Tax and National Insurance deductions
- Tracking forms and correspondence with HMRC
- Consulting HMRC’s digital assistant for guidance
- Updating personal details like name and address
- Saving National Insurance numbers to digital wallets
- Reviewing National Insurance contribution gaps and benefits
- Opting for electronic communications over postal letters
To begin using the app, download it and sign in with your Government Gateway user ID and password. New users can create an ID directly within the app.
