Overview
- HMRC has begun a large mailing and digital push, sending P800 tax-calculation letters to about four million people and urging use of the HMRC app and GOV.UK checker to claim refunds.
- Official data show over 730,000 PAYE refunds went unclaimed last year, with an average value of roughly £855 and a total of about £624 million, and HMRC says as many as one million people may miss refunds each year.
- Refunds are no longer automatic so taxpayers must claim using the P800 letter, the HMRC app, the GOV.UK checker, or by phone, and claims must be made within four years of the tax year in question.
- Common reasons for overpaying include being on the wrong tax code, changing or holding multiple jobs, starting a workplace pension, receiving certain benefits, or Self Assessment adjustments, and the P800 explains the calculations.
- Consumer bodies and HMRC warn of scams by text, email or phone and stress that official refund contact comes by post, while online or app claims are usually paid within five working days compared with much longer postal times.