HMRC is dispatching approximately 4 million income tax refund letters between June and August, with the average sum being £473. The brown envelopes contain promises of a tax refund, but officials warn that many recipients fail to act.
Warning to Recipients
HMRC officials cautioned: "Remember getting a letter about a tax refund but didn't do anything about it? Last year, almost 1 million people didn't claim back the money they're owed." On average, people receive £473 back when claiming a tax refund. The tax authority advises: "Download the HMRC app to check."
How to Claim
HMRC stated: "You may get a letter from HMRC asking you to contact us about your repayment claim. We may ask you to send more information to verify your claim. You must respond to the letter so we can make any repayments owed to you as soon as possible." Officials also warned about scams: "If you receive further requests for information to be sent to an email address that does not end in ‘hmrc.gov.uk’, they will not be genuine and you should report this to HMRC."
Common Issues
HMRC noted: "Until people do consistently open their HMRC correspondence, there is always going to be a problem and delays with the tax refund process." Robert Salter, a partner at tax firm Blick Rothenberg, commented: "It is certainly a bit problematic that HMRC continues to use cheques to settle tax refunds in so many cases." HMRC also emphasizes that people must respond to the letters to avoid missing out, due to errors like missed or incorrect details.
Payment Methods
An HMRC spokesperson said: "The vast majority of PAYE repayments are issued via bank transfer, which is now the default option, and the quickest and most secure way for customers to receive their money. Customers can still request to receive their repayment via cheque and it's their responsibility to cash it if they choose this method."
