HMRC Issues Urgent Warning on Unclaimed Tax Refunds
HM Revenue and Customs (HMRC) has issued an urgent warning to UK households, highlighting that approximately one million individuals each year are failing to reclaim tax they have overpaid. This oversight could leave many missing out on significant refunds owed to them.
Social Media Alert and App Verification
In a recent message posted on social media platform X, HMRC encouraged the public to use its official app for verification purposes. The post 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." This move aims to simplify the process for taxpayers to verify their eligibility and initiate refund claims.
Tax Calculation Letters and Refund Processes
According to the GOV.UK website, HMRC should notify individuals if they have overpaid tax. By the end of the tax year on 5 April, if you have paid either too much or too little tax, HMRC will send either a tax calculation letter (also known as a P800) or a Simple Assessment letter. These documents outline the steps to obtain a refund or settle any outstanding tax liabilities.
However, these letters are only issued to employed individuals or those receiving a pension. For those registered for Self Assessment, any underpayment or overpayment is adjusted automatically, and no such letters are sent. Typically, these communications are dispatched between June and March of the following tax year.
Common Reasons for Owed Refunds
You might be owed a tax refund due to several common scenarios, including:
- Being placed on an incorrect tax code, often because HMRC had inaccurate information about your income.
- Finishing one job and starting another in the same month, resulting in dual payments.
- Beginning to receive a pension while still employed.
- Receiving Employment and Support Allowance or Jobseeker’s Allowance.
How to Claim a Refund
If you believe you have overpaid tax and have not received a tax calculation letter from HMRC, you should proactively claim a refund. This can be done through multiple channels:
- Online via the HMRC website.
- Using the HMRC app for a streamlined process.
- By calling 0300 200 3300 for assistance.
HMRC emphasizes the importance of taking action to ensure you receive any money rightfully owed, as delays or inaction could result in continued financial loss for households across the UK.
