HMRC issues millions of tax refunds in June as Brits issued warning | Personal Finance | Finance
Millions of people across the UK will receive letters from HM Revenue and Customs (HMRC) this summer as the tax authority begins issuing tax refund notices.
HMRC started sending the letters on June 1, said to equate to about four million, with details of specific income tax refund notices per individual case. The mailout is scheduled to continue until the end of August.
The tax authority has warned recipients that they must respond and clarify any additional information in order to receive any repayment owed to them.
Officials said: “You must respond to the letter so we can make any repayments owed to you as soon as possible.”
Figures show that nearly one million people did not claim tax refunds last year due to failing to respond to correspondence from the department.
According to the tax authority, the average unclaimed repayment stands at £473.
Refunds are routinely issued each year if someone has paid too much income tax during the financial year. This is often down to one of three reasons: either they were placed on the wrong tax code, changed jobs or worked multiple jobs simultaneously.
HMRC reviews records to determine whether taxpayers have overpaid and then issues what is known as a P800 letter to those eligible for a repayment, after the tax year ends in April.
Officials said: “Last year, almost 1 million people didn’t claim back the money they’re owed.”
They added: “On average, people get £473 back when claiming a tax refund.”
Arguably, the most straightforward approach is for taxpayers who are owed money back to claim their repayment digitally through their Personal Tax Account or the HMRC app. Those who do so are likely to receive their money within five working days.
Those choosing to receive payment by cheque may wait up to six weeks for the funds to arrive.
Some people will be required to submit claims manually depending on their circumstances, although many refunds are processed automatically through the P800 system.
