HMRC has issued an urgent warning that up to one million people in the UK may be missing out on tax refunds they are owed. In a post on X (formerly Twitter) on Thursday, June 25, the tax authority urged Britons to check if they are among those entitled to unclaimed money.
How to Check for a Tax Refund
According to HMRC, taxpayers should log into the HMRC app to "easily manage your money and claim any tax you’re owed." The app provides a direct link to the GOV.UK website for submitting claims. HMRC's post read: "Could you be one of the million missing out on a tax refund?"
Unclaimed Refunds: The Numbers
Sky News reports that HMRC data shows around 730,000 refunds went unclaimed last year. The average value of these refunds was £855. To claim, taxpayers must submit a claim within four years from the end of the relevant tax year.
Reasons for Overpayment
Tax is usually deducted automatically from wages and pensions, but overpayments can occur for several reasons. Common causes include being assigned the wrong tax code by HMRC, which may happen if you have recently changed jobs, your work benefits have changed, or you have started receiving pensions. Chartered accountants and tax advisors Julian Hobbs & Co. note that these changes can lead to incorrect tax deductions.
Using the HMRC App
The HMRC app is the fastest way to claim a rebate if you have paid too much tax, according to North Wales Live. In addition to checking tax refunds, the app allows you to view your tax code, National Insurance number, income and benefits, employment and income history from the last five years, Unique Taxpayer Reference (UTR) for Self Assessment, Self Assessment tax and amounts owed, Child Benefit, State Pension forecast, and gaps in National Insurance contributions.
Deadlines and Next Steps
Taxpayers are encouraged to act promptly, as claims must be made within four years of the end of the tax year in which the overpayment occurred. HMRC may notify some individuals about overpayments, but it is not always automatic. Checking the app is the recommended first step to ensure you do not miss out on money you are entitled to.
