HMRC has revealed that nearly one million people are missing out on an average of £473 in tax refunds simply because they failed to respond to their letters last year. Starting this week, the tax authority is dispatching approximately 4 million income tax refund letters between June 1 and August 31, warning recipients that they 'must respond' if asked for more details or risk missing out on money owed to them.
Why Are Refunds Being Sent?
The refunds typically arise when people overpay income tax due to incorrect tax codes, job changes, or holding multiple jobs simultaneously. Claiming online via your Personal Tax Account or the HMRC app is the quickest method, with payments usually processed within 5 working days.
What You Need to Do
If you receive a P800 letter, you must respond promptly. HMRC warns: '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.' Those with work-related expenses or complex income arrangements typically need to make claims themselves within four years using the HMRC app or relevant forms on gov.uk.
Beware of Scams
HMRC has issued warnings about fake letters circulating. They state: 'You must respond to the letter so we can make any repayments owed to you as soon as possible. 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.'
The letters, known as P800s, are being sent to employees on PAYE and pensioners who may have overpaid tax on their income. Act now to secure your refund.
