Overview
- In an X post on August 20, HMRC said almost one million people did not claim refunds they were owed last year and urged downloads of its app.
- Potential overpayments can stem from job taxes, work expenses, pensions, Self Assessment, redundancy payments, foreign or UK income earned before leaving, savings interest or PPI, and annuities.
- HMRC typically notifies people by letter near the end of the tax year, and recipients should review P800 notices, P60s, and payslips for errors.
- Wrong tax codes can lead to sizeable overpayments, with 1257L cited as the most common code for single-job or pension taxpayers and a standard Personal Allowance of £12,570.
- Government guidance notes the Personal Allowance tapers by £1 for every £2 of adjusted net income over £100,000, falling to zero at £125,140, and RIFT reports an average rebate around £3,000 based on four-year claims data.