HMRC Urges 700,000 People to Claim Tax Refunds

HM Revenue and Customs is urging approximately 700,000 people to claim tax refunds they are owed following the distribution of P800 tax calculation letters. These letters, sent between June and March, notify workers of tax overpayments or underpayments, with average refund amounts of £473.

Eligible individuals may have been affected by incorrect tax codes, overlapping employment payments, or the start of pension or benefit payments. Refunds can be claimed via the HMRC app, personal tax accounts on GOV.UK, or by contacting the agency directly. Processing times range from five working days for online transfers to six weeks for cheques.

For those who underpaid less than £3,000, the agency typically recovers the debt automatically by adjusting the tax code for the following year. While an HMRC spokesperson stated that instructions were sent this summer, other reports indicate that nearly one million people have failed to claim their refunds out of an estimated four million letters sent.