HMRC has begun dispatching four million tax refund letters, each averaging £473, urging recipients to respond promptly to secure their repayments. The mailout commenced on June 1 and will continue until the end of August.
Response Required for Repayment
The tax authority, operating under the Labour government, warned that recipients must provide any additional information requested in the letter to receive the money owed. Officials stated: "You must respond to the letter so we can make any repayments owed to you as soon as possible."
Data reveals that nearly one million people failed to claim tax refunds last year due to not responding to HMRC correspondence. The average unclaimed amount was £473.
Why Tax Refunds Occur
Tax refunds arise when individuals overpay income tax, often due to incorrect tax codes, changing jobs, or holding multiple jobs simultaneously. HMRC calculates overpayments after the tax year ends and issues a P800 letter. Claiming online via a Personal Tax Account or the HMRC app is the fastest method, with payments processed within five working days. Cheques can take up to six weeks.
How to Verify Genuine Letters
HMRC advised: "You may get a letter from HMRC asking you to contact us about your repayment claim. We may ask you to send more information to verify your claim. You must respond to the letter so we can make any repayments owed to you as soon as possible. If you receive further requests for information to be sent to an email address that does not end in 'hmrc.gov.uk', they will not be genuine and you should report this to HMRC."
An HMRC spokesperson added: "The vast majority of PAYE repayments are issued via bank transfer, which is now the default option, and the quickest and most secure way for customers to receive their money. Customers can still request to receive their repayment via cheque and it's their responsibility to cash it if they choose this method."
