HMRC Urges Taxpayers to Claim Unclaimed Millions in Rebates

The HM Revenue and Customs (HMRC) has issued warnings via social media urging UK taxpayers to review their communications to ensure they do not miss out on tax rebates. The tax authority reported that nearly 700,000 people failed to claim money owed to them last year, with government figures placing the average general refund at £473. Taxpayers are encouraged to use the official HMRC app to identify overpayments caused by incorrect tax codes following job changes, benefit adjustments, or the start of pensions.

Parallel to general warnings, HMRC issued over £50.3 million in tax refunds to more than 12,500 individuals overtaxed on flexible pension withdrawals between April and June 2026. These specific overpayments occur when emergency tax codes are applied to initial withdrawals. The average refund for these pension savers stands at nearly £4,000.

Retirement specialists are advising savers to utilize P55, P53Z, and P50Z forms to secure these funds. Adam Cole of Quilter noted that while the number of reclaim forms saw a slight decrease compared to the previous year, the total amount repaid increased by nearly £2 million. He indicated that retirees are being left out of pocket during a period of rising financial pressure while waiting for the return of their own funds.