HMRC has sent out a notification to nearly one million individuals who are eligible for a tax refund.
The tax authority, HMRC, shared in a recent Instagram post that they had previously contacted individuals who had overpaid income tax last year.
Overpaying income tax can occur due to various reasons, with the most common cause being an incorrect tax code assignment.
In case of an overpayment, HMRC typically sends a P800 tax calculation letter detailing the process to claim the refund.
Claiming a tax refund can usually be done online or by waiting for a refund check to be dispatched by mail.
HMRC highlighted that many people fail to claim their owed tax refunds even after receiving notifications.
Having an incorrect tax code could mean that you are entitled to a refund, as tax codes indicate the amount of tax deducted from your earnings.
The standard tax code for individuals with a single job or pension is 1257L, but it may vary for others.
Being placed on an incorrect tax code can happen due to various factors like starting a new job or inaccurate income information provided to HMRC.
To verify your tax code, review your recent payslip or P45 if you recently changed jobs.
If you have overpaid tax and are due a refund, reach out to HMRC at 0300 200 3300 or utilize the HMRC app to claim your money back.
In the event of underpaid tax, you would owe HMRC the outstanding amount, and it is advisable to address this promptly to avoid accruing additional charges.