Could you be missing out on £800? Here’s how to claim a HMRC tax rebate

Could you be owed money and not even realise it? Every year, hundreds of thousands of people miss out on tax refunds from HMRC, often worth hundreds of pounds.

In fact, recent figures show around 178,000 tax rebate cheques went uncashed in a single year, with a combined value of £144 million. That’s roughly £800 per person, sitting there unclaimed.

So why does this happen?

Usually, it’s because you don’t realise you’ve overpaid, or you miss the letter telling you how to claim it.

Here’s how to check if you’re owed money, and how to get it back.

Why you might be due a tax rebate

It’s surprisingly easy to pay too much tax. Even small changes in your work or income can throw things off.

You might have overpaid if you:

• were given the wrong tax code
• changed jobs and were paid by two employers in the same month
• took a break from 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

You can get a rebate on more than just your salary. If you’ve overpaid, or missed claiming reliefs, you could be owed money from things like:

• pay from your current or previous job
• work expenses, like uniforms you paid for yourself
• business costs if you’re self-employed, like office expenses
• personal pension contributions
• redundancy payments
• charity donations

How to claim your tax rebate

If you’ve paid too much tax through PAYE, for example, via your job or pension, HMRC will usually contact you.

You’ll get a tax calculation letter, known as a P800, which explains how to claim.

From there, you can:

• claim your refund online, this is the quickest option
• or wait for a cheque to be sent to you

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 from 6 April to 5 April the following year. HMRC reviews your tax after this and typically sends out rebate letters between June and November.

How quickly you get paid depends on what you do next:

• claim online and you’ll usually receive the rebate within five working days
• do nothing within 21 day and a cheque is sent out which can take up to six weeks to arrive

If your rebate comes from a Self Assessment, timing can vary depending on your situation.

What’s changed recently?

HMRC is moving away from sending automatic cheques.

Instead, you’re more likely to be contacted and asked to claim your refund yourself, unless you specifically request a cheque.

That means it’s more important than ever to keep an eye out for messages and take action when prompted.