HMRC has sent reminders to nearly one million individuals who are eligible for a tax refund. Last year, HMRC notified these individuals via letters after they had overpaid their income tax. One common reason for overpayment is being assigned an incorrect tax code.
If you have paid too much tax, HMRC typically sends a P800 tax calculation letter detailing the process to claim a refund. You can claim your refund online or opt to receive a check by mail.
According to HMRC, approximately one million individuals failed to claim their owed money from tax refunds last year. Incorrect tax codes can lead to potential refunds, with the most prevalent code being 1257L for singular job or pension holders. Various factors, such as starting a new job or inaccurate income information provided to HMRC, can inadvertently place individuals on the wrong tax code.
To ascertain your tax code, refer to your latest payslip or P45 if you recently left your job. If you believe you have overpaid tax and are entitled to a refund, reach out to HMRC at 0300 200 3300 or utilize the HMRC app to make a claim.
In instances of underpaid tax, individuals are obligated to repay the deficit to HMRC. It is advisable to resolve any underpaid tax promptly to avoid facing a larger bill later on.
