Hundreds of thousands of people across the UK could soon receive a letter from HMRC revealing they are owed a tax refund. The letters, known as P800 tax calculations, are sent when HMRC finds a difference between the tax you paid and what you should have paid in a tax year. If you overpaid, the letter explains how to claim your refund; if you underpaid, it details how the balance will be recovered.
Average Refund Amount
Refunds issued through the P800 process are worth an average of around £473, making it worthwhile to check any correspondence from HMRC carefully. The letters are typically sent to those who have changed jobs, been on the wrong tax code, started receiving a workplace pension, or claimed certain benefits like Employment and Support Allowance or Jobseeker's Allowance.
How to Claim Your Refund
Recipients can usually claim their money online through their Personal Tax Account or the HMRC app if they have a UK bank account. Refunds requested by bank transfer are typically paid within five working days, while those choosing a cheque could wait up to six weeks. An HMRC spokesperson told the Express: "We wrote to customers this summer to inform them they are due a refund, and need to claim it. Customers can follow the straightforward instructions in the letter, which explain how they can quickly and easily claim it online on GOV.UK or via the HMRC app."
Unclaimed Refunds
HMRC also reminded taxpayers on X that many refunds remain unclaimed. It said: "Remember getting a letter about a tax refund but didn't do anything about it? Last year, almost 700,000 people didn't claim back the money they're owed. Download the HMRC app to check." If the calculation shows tax is owed instead, HMRC will usually collect the money automatically by adjusting the recipient's tax code, provided the amount and circumstances meet the qualifying criteria.
