HMRC has sent out a notice to nearly a million individuals who are eligible for a tax refund.
Through an Instagram post, HMRC informed recipients that they were contacted last year due to overpaying income tax, often resulting from an incorrect tax code assignment.
A common reason for overpayment of income tax is an inaccurate tax code allocation. In cases of overpayment, HMRC typically dispatches a P800 tax calculation letter detailing the refund claim process.
Claiming a tax refund can usually be done online or by awaiting a mailed check from HMRC.
Have you received a tax refund notification but failed to act on it? HMRC revealed that almost 1 million individuals missed claiming their owed refunds last year.
If your tax code is inaccurate, you might be entitled to a refund. Tax codes indicate the amount of tax deducted from your pay before receiving it.
The widely used tax code, 1257L, is for individuals with one job or pension, but not everyone falls under this code.
Various reasons could lead to an incorrect tax code assignment, such as starting a new job or providing incorrect income information to HMRC.
To verify your tax code, review your recent payslip or P45 if you recently left a job.
If you have overpaid tax and are owed a refund, contact HMRC at 0300 200 3300 or use the HMRC app.
In case of underpaid tax, you would owe HMRC money, so addressing this promptly is advisable to prevent a larger bill.
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