Around 730,000 taxpayers in the UK failed to claim an average of £855 each in PAYE tax refunds last year, leaving an estimated £624 million unclaimed, according to figures cited by tax experts. Anyone due a PAYE repayment should receive a P800 tax calculation letter detailing the amount they are due back, but these refunds are not always automatic.
Why refunds go unclaimed
Adelle Greenwood, tax manager at the Institute of Chartered Accountants in England and Wales, said: “With more than 700,000 people missing out on a total of £624m in tax refunds last year, we'd encourage all taxpayers to check whether they are owed money from HMRC.” She added: “Employees who do not have other sources of income may not have realised that it is their personal responsibility to make the claim and are encouraged to do so now.”
The unclaimed refunds often occur because employees without additional income sources may not be aware that they must proactively claim the money back. Employers are not able to claim P800 refunds on behalf of their staff, as the reconciliation process happens after the tax year ends and payroll is finalised.
How to check and claim your refund
Taxpayers are advised to check their P800 form to ensure their tax code is correct and that all allowable employment expenses are included. The quickest way to claim money back is via the HMRC app, or through the personal tax account on the HMRC website, with options for bank transfer or cheque.
Online repayments are typically made within five working days, while repayment by cheque can take up to six weeks. If you believe the P800 is wrong, you must inform HMRC, even if they have repaid you too much, to avoid potential penalties.
Employers urged to remind staff
Ormerod Rutter, an accounting firm, explained: “Employers aren’t able to claim P800 refunds on behalf of their staff — the reconciliation process happens after the tax year ends and payroll is finalised. That said, HMRC’s February 2026 Employer Bulletin encourages employers to remind their employees to check their position and submit a claim if one is due. Many employees without additional income sources may simply not be aware that the responsibility now sits with them.”
The Institute of Chartered Accountants in England and Wales urges all taxpayers to check whether they are owed money from HMRC, particularly those who have not received a P800 or who have changed jobs or income sources. The total unclaimed amount represents a significant sum that could be recovered by individuals taking a few minutes to verify their tax status.
