HMRC tax refund warning as one million people miss out on £473 average payout

Joe Sledge
Sun, 26 Apr 2026 13:48:10 +0000

Nearly one million people across Britain are yet to claim money owed to them by HM Revenue and Customs (HMRC), with the department urging taxpayers to check whether they are due a refund.

The tax authority said many individuals may have overpaid income tax during the previous financial year and could be entitled to reclaim it.

On average, successful claims resulted in a refund of £473.

HMRC said: “Remember getting a letter about a tax refund but didn’t do anything about it? Last year, almost one million people didn’t claim back the money they’re owed.”

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Refund amounts vary depending on individual circumstances, but officials said checking eligibility could result in hundreds of pounds being returned.

There are several common reasons why people overpay tax through the PAYE system.

Being placed on the wrong tax code is a frequent cause, while changing jobs during the tax year can also lead to incorrect deductions.

Working for only part of the year, or experiencing periods of unemployment, may result in excess tax being paid.

Some people also overpay tax on interest earned from savings, and overpayments can occur where individuals are eligible for tax relief on work‑related expenses but have not claimed it.

HMRC said taxpayers are entitled to reclaim any excess tax they have paid.

Eligibility can be checked online through the official Government service, and the HMRC app allows users to review their tax position and submit claims.

Taxpayers who have received a Tax Calculation Letter, known as a P800, can use it to confirm whether they are owed money.

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Those who have not received a letter but believe they have overpaid can contact HMRC directly to request a review.

Claims can be backdated for up to four tax years, meaning that from April 2026 taxpayers may be able to reclaim overpayments dating back to April 2022.

Refunds are typically processed within three weeks.

HMRC has also warned against using third‑party firms that offer to claim refunds on behalf of customers.

These companies often charge a commission, reducing the amount received by the taxpayer, and there is a risk that incorrect claims could be submitted, which may result in repayments being demanded.

The department advises the safest way to claim is directly through its official services.

Taxpayers can also check their tax code through their personal tax account, payslips or the HMRC app to ensure it is correct.