Thousands of UK households are discovering unexpected financial good news landing on their doormats, with HM Revenue and Customs (HMRC) letters that could mean a welcome cash refund.
What is the HMRC P800 letter?
BBC Morning Live personal finance expert Dan Whitworth recently highlighted this government scheme, explaining that these communications are genuine P800 tax calculations. They are sent when HMRC determines that you have overpaid income tax during the previous financial year.
"These are known as P800 letters," Mr Whitworth stated. "They are sent when HMRC believes you've overpaid tax, often due to changes in your employment or circumstances that haven't been reflected immediately in your tax code."
Why you might be owed money
The tax authority has confirmed that the average repayment amount is £473, a substantial sum for many families facing cost-of-living pressures. Common situations that lead to overpayment include:
- Having more than one job simultaneously in a single tax year
- Changing employment where your new employer didn't receive your tax details promptly
- Stopping work partway through the tax year
- Having savings interest or certain state benefits taxed incorrectly
How to claim your refund
If you receive one of these letters, the process to claim your money is straightforward. Mr Whitworth's advice is simple: "Check it carefully." You can verify the refund and have it paid directly into your bank account by logging into your personal tax account on the GOV.UK website or using the official HMRC app.
For those who cannot or prefer not to use digital services, alternative methods are available. You can contact HMRC by telephone on 0300 200 3300 or send correspondence to: Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS.
An HMRC spokesperson confirmed the scale of this initiative, telling BBC Morning Live: "We wrote to around 4 million customers this summer to inform them they are due a refund, and need to claim it."
The spokesperson added: "Customers can follow the straightforward instructions in the letter, which explain how they can quickly and easily claim it online on GOV.UK or via the HMRC app."
With millions of letters sent and average refunds approaching £500, UK households are urged to check their post carefully and follow the official guidance to secure any money they are rightfully owed.
