Could you be missing out on over £800?

You might be owed money and not even know it.

Recent data from HM Revenue and Customs (HMRC) shows hundreds of thousands of tax refunds go unclaimed every year. The average refund is a hefty £855, with an estimated £624m left on the table.

How refunds work and why you might miss yours

If you’ve overpaid tax through PAYE, for example, via your job or pension, HMRC usually sends a P800 tax calculation letter explaining what you’re owed.

But it’s not always that simple:

• refunds aren’t always automatic
• around 730,000 went unclaimed last year

You have four years from the end of the relevant tax year to claim your money.

Why you might be owed a refund

Overpaying tax is more common than you might think. You could be affected if you:

• were given the wrong tax code
• changed jobs and were paid by two employers in one month
• took time off work
• started receiving a pension while still working
• received benefits like employment and support allowance or jobseeker’s allowance

What you can claim money back on

Refunds don’t just come from salary overpayments. You might be able to claim for:

• income from current or previous jobs
• work expenses, such as uniforms, tools and mileage
• business costs if you’re self-employed
• personal pension contributions
• redundancy payments
• charity donations

How to claim your tax rebate

Once you receive a P800 letter, it’s your responsibility to check the details, including your tax code and any allowable expenses.

You can then:

• claim online via your personal tax account
• use the HMRC app
• wait for a cheque to be sent

If you haven’t received a P800 but think you’ve overpaid, visit the government website to submit a claim manually.

If you’re self-employed or have additional income, you may need to complete a self-assessment tax return.

When you’ll get your money

• the UK tax year runs 6 April – 5 April
• HMRC typically sends P800 letters between June and November

Once notified:

• claim online and you’ll usually be paid within five working days
• do nothing for 21 days and a cheque will be sent, which can take up to six weeks

Self-assessment refunds may take longer depending on your situation.

What’s changed recently?

HMRC is phasing out automatic cheque payments.

Instead, you’ll usually be asked to claim your refund yourself, making it more important than ever to:

• check your post and email
• review your tax code
• act quickly when notified

If you haven’t reviewed your tax situation recently, now’s a good time to do it.