Households have been urged to check if they are overpaying on their tax as hundreds of thousands of refunds are still going unclaimed, according to latest HMRC data.
Anyone due a PAYE repayment should receive a P800 tax calculation letter detailing the amount they are due back, guidance from the tax authority states.
But these refunds aren’t always automatic, with around 730,000 going unclaimed last year, official figures show.
The average refund was a substantial £855, meaning an estimated £624m was left unclaimed.
Anyone who believes they have been overcharged but have not received a P800 from HMRC can find guidance on the tax authority’s website on how to submit a claim.
Taxpayers have four years from the end of the affected tax year to claim their refund.
Adelle Greenwood, tax manager at the Institute of Chartered Accountants in England and Wales, said: “With more than 700,000 people missing out on a total of £624m in tax refunds last year, we'd encourage all taxpayers to check whether they are owed money from HMRC.”
She added: “Employees who do not have other sources of income may not have realised that it is their personal responsibility to make the claim and are encouraged to do so now.”
Once a P800 is sent, it is down to the recipient to check their tax code is correct, and that all allowable employment expenses are factored in. This could include uniform, tools, professional subscriptions and mileage, for instance.
The easiest way to claim the money back is using the HMRC app or through a personal tax account on its website. Bank transfer and cheque options are both available.
Online repayments are made within five working days, while cheques repayments take up to six weeks.
Last month, it was revealed that over 170,000 people missed out on their tax refunds in 2025/26 due to not cashing cheques sent to them by HMRC.
How to know if you’ve overpaid tax
For most employees, tax is collected through the PAYE system, which means it is automatically taken from wages or pensions. In most cases, workers on this scheme won’t need to file tax returns, with the calculations handled for them.
However, mistakes can still be made, leading to issues like overpayment.
Repayments are often owed because of an incorrect or outdated tax code, or because the taxpayer has not been allocated their full personal allowance for the year.
Other common reasons include the personal not working for the full tax year, or changing jobs or working hours during the year.
For pensioners, it is possible a refund may be due if the incorrect amount of state pension has been included in their tax code.
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