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 potentially overpaying taxes is due to being assigned an incorrect tax code, particularly after a recent job change. The prevalent tax code for the current tax year is 1257L for individuals with one job or pension. This code signifies that one can earn up to £12,570 in a tax year before facing taxation, aligning with the current personal allowance.
Various other factors could lead to overpaid taxes, such as inaccuracies in the allocation of personal allowances for individuals holding multiple jobs or incorrect tax deductions from pension income.
HMRC disclosed its intention to dispatch approximately four million P800 tax refund notifications between June and August. Subsequently, HMRC has posted an update on social media, urging individuals to check if they are due any refunds.
To determine your tax code, refer to your recent payslip, P45 (if applicable due to job termination), or visit GOV.UK with a Government Gateway ID. This unique 12-digit ID allows access to UK government services online.
If you believe you are owed a refund, you can make a claim online via GOV.UK using the reference number from your P800 letter and National Insurance number. Claims can be made for up to four prior tax years if your tax code has been incorrectly set. HMRC may consider refunds beyond four years in specific cases where they are accountable for the overpayment.
MoneySavingExpert.com has cautioned individuals to remain vigilant against scammers posing as HMRC. The genuine HMRC will always communicate through official letters regarding any owed tax, refraining from contacting individuals via text, email, or phone calls.