Tax experts have urged people to check if they are due a tax refund from HMRC. Accountancy firm HW Fisher has warned taxpayers to look out for a key letter that goes out to advise people if they are owed cash.
The group said you could be owed a refund from HMRC for various reasons. The tax experts singled out several situations where individuals might find themselves entitled to extra cash.
These include being on an incorrect tax code, moving to a new job, changes in your pension contributions, or receiving certain Government allowances like Jobseeker’s Allowance or Employment and Support Allowance.
Self-employed individuals might also have a rebate waiting if their tax payments based on an estimated income were more than their actual earnings, or if they’ve not yet claimed all deductible business-related expenses. Simon Blum, tax director at HW Fisher, advised those who suspect they might have overpaid: “Check your tax records and expenses.
“You can do this by logging onto your personal tax account on the HMRC website or contacting HMRC directly. Claims can be made for up to four tax years, but in more complicated cases seeking professional advice from an accountant is advised.”
He also highlighted the importance of claiming work-connected expenditures, such as maintenance of work clothing, vehicle fuel costs, and fees for professional subscriptions or memberships linked to employment. Mr Blum issued a stern warning about scams, emphasising that HMRC would never contact individuals about a tax rebate via text or email. He said: “HMRC-related scams are on the rise, and it is important to be vigilant.”
How will HMRC inform me if I am owed a tax refund?
Mr Blum urged people to keep an eye out for a crucial letter from HMRC regarding tax refunds. He explained: “You should receive a P800 letter from HMRC if you have paid too much tax. This will outline how much you are owed and how to claim a refund.
“However, in some cases you could also receive a Simple Assessment letter if you have underpaid your tax and need to make a payment.
The P800 letter only goes out to people who are not within self assessment, who are in employment or who are receiving a pension. The letters typically go out between June and November.
Self-employed taxpayers can get their tax refund from HMRC by completing their self-assessment tax return. The deadline to complete this for the current tax year is January 31 this year. After this date, you will need to make a claim directly to HMRC.
How do I claim a tax refund if I get a P800 letter?
If you get this letter, Mr Blum said the process of claiming your tax refund is “simple and quick”.
You can claim the funds by logging into your Government Gateway account and completing all the steps, and the money should arrive in your account within five working days.
You also have the option to claim a refund via the HMRC mobile app.