HMRC Warns One Million Taxpayers Failed to Claim Refunds in Previous Year

HM Revenue and Customs has issued a reminder to taxpayers following revelations that approximately one million individuals failed to claim tax rebates they were entitled to during the previous year. The tax authority is encouraging members of the public to verify their status through its mobile application to ensure they are not missing out on funds owed to them.

In a statement published on social media platform X, HMRC highlighted the scale of unclaimed refunds. The department advised taxpayers to download its official application to check whether they are due any repayments from overpaid tax.

According to guidance published on the GOV.UK website, HMRC is required to notify taxpayers in cases where they have overpaid tax. Following the conclusion of each tax year on 5 April, individuals who have paid either excessive or insufficient amounts of tax should receive correspondence from HMRC in the form of either a tax calculation letter, commonly referred to as a P800, or a Simple Assessment letter.

These communications detail the process for obtaining a refund or settling any outstanding tax liabilities. However, such letters are only issued to individuals who are employed or receiving a pension. Taxpayers registered for Self Assessment will have their accounts adjusted automatically to reflect any underpayment or overpayment, and therefore will not receive a tax calculation letter or Simple Assessment letter. The correspondence is typically dispatched between June and March of the subsequent tax year.

Several circumstances may result in taxpayers overpaying tax. Common scenarios include being assigned an incorrect tax code due to HMRC holding inaccurate information regarding an individual’s income, completing employment with one organisation whilst commencing a new position and receiving payment from both employers within the same month, beginning to receive a workplace pension, or claiming Employment and Support Allowance or Jobseeker’s Allowance.

Taxpayers who believe they have paid excessive tax but have not received a tax calculation letter from HMRC are advised to initiate a refund claim. This can be completed through the online portal available on the GOV.UK website, via the HMRC mobile application, or by contacting the department by telephone on 0300 200 3300.

The HMRC application offers functionality beyond checking tax refund eligibility. Users can obtain estimates of their tax liability, make Self Assessment and Simple Assessment payments, set payment reminders, access their Help to Save account, utilise tax calculators to determine net pay after Income Tax and National Insurance deductions, track correspondence submitted to HMRC, and seek assistance from the department’s digital assistant.

The application also enables users to update personal details including name and address, save their National Insurance number to a digital wallet, review gaps in National Insurance contributions and assess the benefits of making voluntary payments, and opt for electronic communication from HMRC rather than receiving postal correspondence.

To access the service, individuals must sign in using their Government Gateway user identification and password. Those without existing credentials can create an account through the application itself.