Tax refunds of £473: who received letters from HMRC and how to claim back money.

According to The Sun: HMRC encourages households to apply for tax refunds.

The tax service has sent letters to many households informing them of their eligibility for a tax refund.

There are several reasons why you may have overpaid tax. For example, if you were under the wrong tax code, started receiving a pension at work or received employment support.

From June to August, the tax service sent out about four million P800 letters informing people of their refund rights.

Additionally, HMRC has reached out on social media to encourage households to apply for refunds.

“Received a letter that you need to claim a tax refund? You may be due an average of £473. Download the HMRC app to find out how you can do this.”

If you received a letter, it will specify which bank account you can receive the refund to.

Households can also download the HMRC app and make a claim through their smartphone or tablet.

Clients who have downloaded the app can also track their taxes to ensure they have the correct tax code.

If you received a letter but do not have access to a computer or phone with internet, you can contact HMRC by phone or post.

Phone number for contact: 0300 200 3300. Letters should be sent to:

• Pay As You Earn and Self Assessment
• HM Revenue and Customs
• BX9 1AS
• United Kingdom

It is also important to regularly check your payslip to confirm that you are on the correct tax code and not overpaying.

What are the different tax codes?

Your tax code indicates how much you should pay to HMRC each month.

Below we explain what the different codes mean:

• L – You are entitled to the standard personal allowance
• M – Marriage allowance: you have received a transfer of 10% of your partner's personal allowance (£1,260)
• N – Marriage allowance: you have transferred 10% of your personal allowance to your partner
• S – Your income or pension is taxed at Scottish rates
• T – Your tax code includes other calculations to determine your personal allowance, for example, it is reduced because your estimated annual salary exceeds £100,000
• 0T – Your personal allowance (currently £12,570) has been used up, or you have started a new job, and your employer does not have the information needed to provide you with a tax code
• BR – All your income from this job or pension is taxed at the basic rate (usually used if you have more than one job or pension)
• D0 – All your income from this job or pension is taxed at the higher rate (usually used if you have more than one job or pension)
• D1 – All your income from this job or pension is taxed at the additional rate (usually used if you have more than one job or pension)
• NT – You do not pay any tax on this income
• Tax codes beginning with K mean that you have income that is otherwise not taxed and exceeds your personal allowance.

If HMRC does not receive information about changes in your job or salary, it sometimes cannot update your tax code.

Thus, the best time to check your code is when you change jobs.

If you believe your tax code is incorrect, you should contact HMRC as soon as possible.

The quickest way to do this is usually by phone at 0300 200 3300.

How to check your tax code?

You can check your tax code in your online personal tax account, on any payslips, or on the HMRC app.

To log in, visit www.gov.uk/personal-tax-account.

If you have it, you can also check it in the 'Tax Code' letter.

Note that you may need your Government Gateway ID and password to log in.

If you do not have it, you can use your National Insurance number or postcode and two of the following:

• A valid UK passport
• A UK driving license photo ID issued by DVLA (or DVA in Northern Ireland)
• Payslips for the last three months or P60 from your employer for the last tax year
• Information from a tax relief claim if you have submitted one
• Information from a self-assessment return (for the last two years) if you have submitted one
• Information stored in your credit report if you have one (such as loans, credit cards, or mortgages)

Tax refunds can be a nice bonus for households that have overpaid during the year. It's important not to miss the opportunity, as HMRC is actively reminding about this possibility right now. If you received a letter, do not hesitate - respond and claim your money.

Not everyone is aware that their tax code can affect the amount they pay, so it is worth being vigilant and checking this information. Regardless of whether you access it via the app or call, do not forget about your rights to claim back taxes.