HMRC is advising numerous taxpayers to verify if they are entitled to a tax refund, with the average refund amounting to £473.
One common reason for potential overpayment of tax is being assigned an incorrect tax code, which can happen when changing jobs. The prevalent tax code for the current year is 1257L for individuals with a single job or pension. This code allows for earning £12,570 in a tax year before taxation applies, representing the current personal allowance.
There are various other factors that could lead to overpayment of tax, such as incorrect allocation of personal allowance for individuals with multiple jobs or pension income.
HMRC recently announced the intention to send approximately four million P800 tax refund letters from June to August. In a new communication on X, HMRC is encouraging individuals to check if they have outstanding refunds.
If eligible for a refund, individuals can claim it online through GOV.UK using the reference number on the P800 letter and their National Insurance number. In cases where the tax code has been incorrect for an extended period, refunds for up to four additional years can be claimed.
MoneySavingExpert.com has cautioned the public about scammers posing as HMRC and emphasized that HMRC always communicates about tax refunds through letters, not via text, email, or phone calls.