HMRC has sent reminders to nearly one million individuals who are entitled to a tax refund.
In a social media update on Instagram, HMRC clarified that notifications were issued last year to individuals who had overpaid income tax. Various factors can lead to overpayment, with an incorrect tax code being a common cause.
Typically, HMRC sends a P800 tax calculation letter to individuals who have overpaid tax, providing instructions on how to claim a refund. Refunds can be claimed online or by waiting for a check to be sent by mail.
HMRC highlighted that many people fail to claim their owed money even after receiving notification about a tax refund. Incorrect tax codes can result in individuals being owed a refund, as these codes indicate the amount of tax deducted from income before receiving it. The standard tax code for single jobholders or pensioners is 1257L, but variations exist.
Errors in tax codes can occur for various reasons, such as starting a new job or inaccurate income information provided to HMRC. To verify your tax code, refer to your latest payslip or P45 if you recently left employment.
If you have overpaid tax and are eligible for a refund, you can contact HMRC at 0300 200 3300 or utilize the HMRC app to initiate the claim process. Conversely, underpayment of tax requires repayment to HMRC promptly to avoid accruing additional charges.
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