Millions of UK Workers Could Receive a £943 Tax Refund – Check If You’re Eligible!

Many UK workers may be in for a pleasant surprise as HMRC prepares to issue tax refunds for those who overpaid their taxes. In the 2022-23 tax year, the government refunded a staggering £8.3 billion in overpaid taxes. On average, each eligible taxpayer received £943.

With the self-assessment deadline approaching on January 31, experts are advising individuals to check whether they are owed a refund. If you have overpaid tax, you could receive a financial boost – but you need to act fast.

Why Do People Overpay Taxes?

Overpayment of taxes happens for various reasons, including:

• Wrong tax codes: If your employer used an incorrect tax code, you may have paid more tax than required.
• Multiple jobs: If you have more than one job, your tax-free allowance may not have been applied correctly.
• Work expenses: If you paid for work-related expenses out of pocket and didn’t claim relief, you might be owed a refund.
• Self-assessment errors: Some taxpayers make mistakes when filing their tax returns, leading to overpayment.
• Emergency tax deductions: If you recently changed jobs and were put on an emergency tax code, you might have overpaid.

How to Check If You Are Owed a Tax Refund

Consumer rights expert Martyn James points out that HMRC does not provide an exact number of overpaid taxpayers, making it difficult to know if you are due a refund. Many people miss out simply because they don’t check their tax records.

Here’s how you can find out if you have overpaid tax:

1. Log in to your HMRC account: Visit the official HMRC website and sign in using your Government Gateway ID.
2. Check your tax code: Verify if you were taxed under the correct code in the past tax year.
3. Review your payslips and P800 letter: If you have overpaid, HMRC will send you a P800 letter explaining how to claim your refund.
4. Use the HMRC tax refund calculator: This tool can help you estimate how much tax you may have overpaid.
5. Contact HMRC: If you are unsure about your tax situation, reach out to HMRC directly for clarification.

How to Claim Your Tax Refund

If HMRC confirms that you are owed a refund, claiming it is simple. Here’s what you need to do:

• Online Bank Transfer: If you receive a P800 letter, you can request a refund online by providing your bank details.
• Cheque Payment: If HMRC does not offer an online refund, they will send a cheque to your registered address.
• Automatic Refunds: In some cases, HMRC processes refunds automatically, and you don’t need to take any action.

Beware of Tax Refund Scams

With tax refunds being issued, fraudsters may try to scam unsuspecting taxpayers. Be cautious of:

• Fake emails and texts: HMRC never sends refund notifications via email or text messages. If you receive such messages, do not click on any links.
• Phone scams: Scammers may call you pretending to be from HMRC, asking for personal or banking details.
• Third-party services charging a fee: Some companies offer to claim refunds on your behalf for a fee. However, you can do this for free through HMRC.

Why You Should Act Fast

Financial expert Sarah Coles advises taxpayers not to delay claiming their refunds. “The process is simple, and the money belongs to you. Don’t wait – file your claim as soon as possible,” she says.

The self-assessment tax deadline is January 31, so if you think you are owed a refund, check now. Unclaimed refunds can expire, meaning you might miss out on money that is rightfully yours.

Conclusion

If you are a UK taxpayer, checking for a tax refund could put extra cash in your pocket. With millions of pounds being refunded, you may be eligible for an average of £943 in overpaid tax. Log in to your HMRC account, check your tax records, and claim your refund before the deadline.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.