UK Households Urged to Claim HMRC Tax Refunds Worth £855 Before Deadline

Taxpayers across the UK are being urged to review their tax payments and claim any refunds due before the HMRC deadline closes. Last year, an estimated £624 million in tax refunds went unclaimed, with around 730,000 eligible taxpayers missing out on average refunds of £855, according to HMRC data released in February.

Adelle Greenwood, tax manager at the Institute of Chartered Accountants in England and Wales, highlights the importance of claiming these refunds: “More than 700,000 people missed out on a total of £624 million in tax refunds last year. We strongly encourage everyone to check if HMRC owes them money.”

Many employees may not realize it is their personal responsibility to file for refunds, especially if they have no other sources of income. The P800 tax reconciliation takes place after the tax year ends once payroll details are finalized. While employers cannot file P800 claims on behalf of employees, HMRC has advised employers to remind their staff to check and submit refund claims where eligible.

If you have overpaid tax through PAYE, you may be entitled to a tax refund or rebate. HMRC’s online tool can help determine if you need to claim back excess tax from employment income, including potential deductions for work expenses such as working from home, fuel, work clothing, tools, pension contributions, and even Self Assessment tax returns.

You can also check for refunds related to redundancy payments, UK income earned while living abroad, interest from savings, payment protection insurance (PPI) claims, or income from life or pension annuities.

Note that foreign income and UK income earned before leaving the UK should also be considered. However, some refunds cannot be claimed through the online tool and may require alternate processes.

To avoid missing out on money owed, taxpayers should act promptly before the refund claim window closes.