In a post on X, HMRC wrote: “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.” The department urged taxpayers to download the HMRC app to check whether they have unclaimed money.
How much could you claim?
According to Government figures, the average rebate is £473. Tax is usually deducted automatically from wages and pensions, though some people may need to submit a Self Assessment tax return.
If you have overpaid, HMRC may notify you to claim the funds or transfer them automatically depending on the circumstances. If the overpayment is based on information HMRC does not have, such as changes to expenses the department has not been told about, you may need to flag it yourself.
Why you might have overpaid
One common reason for overpaying tax is being assigned the wrong tax code by HMRC, which leads to over-taxation or under-taxation. This can happen after a job change, a change in workplace benefits, or when you start receiving pensions, according to chartered accountants and tax advisors Julian Hobbs & Co.
Deadline and how to claim
Claims must be submitted within four years of the end of the relevant tax year. More details on rebates and how to claim are available on the GOV.UK website. North Wales Live reports that the HMRC app is by far the quickest way to get a rebate if you have paid too much tax.
You can also use the app to check:
- Your tax code
- Your National Insurance number
- Income and benefits
- Employment and income history from the previous five years
- Your Unique Taxpayer Reference (UTR) for Self Assessment
- Self Assessment tax and how much you owe
- Child Benefit
- State Pension forecast
- Gaps in National Insurance contributions
