HM Revenue and Customs (HMRC) has issued a warning that up to one million people in the UK fail to claim back overpaid tax each year. The tax authority is urging Brits to check if they are owed a refund, especially as many may be missing out on money they are entitled to.
How to Check If You Are Owed a Tax Refund
In a post on social media platform X, HMRC encouraged people to use its app to check their tax status. The post stated: "Could you be one of the million missing out on a tax refund? Log onto the HMRC app to easily manage your money and claim any tax you're owed. Download today." According to the GOV.UK website, HMRC should contact individuals if they have overpaid tax. If you have paid too much or too little tax by the end of the tax year (5 April), HMRC will send either a tax calculation letter (also known as a P800) or a Simple Assessment letter. These letters are typically sent between June and March of the following tax year.
You will only receive a letter if you are employed or receive a pension. However, if you are registered for Self Assessment, your bill will be adjusted automatically if you have underpaid or overpaid tax, and you will not receive a tax calculation letter or a Simple Assessment letter.
Why You Might Have Overpaid Tax
There are several common reasons why you might have overpaid tax. These include being placed on the wrong tax code, for example because HMRC had incorrect information about your income; finishing one job and starting a new one, with both paying you in the same month; starting to receive a workplace pension; or receiving Employment and Support Allowance or Jobseeker's Allowance. If you believe you have overpaid tax and HMRC has not sent you a tax calculation letter, you can make a claim for a refund online, via the app, or by calling 0300 200 3300.
Features of the HMRC App
The HMRC app offers a range of features beyond checking for tax refunds. Users can get an estimate of the tax they need to pay, make a Self Assessment payment, make a Simple Assessment payment, set a reminder to make a Self Assessment payment, access their Help to Save account, use the tax calculator to work out take-home pay after Income Tax and National Insurance deductions, track forms and letters sent to HMRC, ask HMRC's digital assistant for help and information, update their name or address, save their National Insurance number to their digital wallet, check for gaps in their National Insurance contributions and the benefits of paying them, check if they can make a payment for gaps in their contributions, and choose to be contacted by HMRC electronically instead of by letter.
To access the app, open it and enter your Government Gateway user ID and password to sign in for the first time. If you do not have a user ID, you can set one up directly through the app.
