Tax refunds are widely welcomed by many people across the UK who may have overpaid on tax for numerous reasons. Some of the most common include starting a new job, an error in a tax code, or being a pensioner with more than one occupational arrangement. Whatever the reason, HMRC will inform Britons if they have paid the correct amount or not.
Indeed, many people tend to receive this correspondence in September – which is just around the corner, so Britons should keep on the look out for a letter.
To provide further clarity on the issue, people can use the government’s tool on claiming a tax refund.
The tool can be accessed online and explains how tax refunds can be claimed.
The government website explains: “You may be able to get a tax refund (rebate) if you’ve paid too much tax. Use this service to see how to claim if you paid too much.”
Examples cited on paying too much tax include pension payments, redundancy payments, a self-assessment tax return, and pay from a current or previous job.
When claiming online, Britons will be prompted to provide the government with information on what they paid too much tax on.
They will then be provided with additional information which can assist with their individual circumstances.
In some cases, people will be required to call HMRC if they have overpaid tax, or fill out additional documentation.
But in many cases, a claim can also be made online.
For those who choose to use the online service to claim, they can expect the money to drop into their bank account within five days.
According to government rules, Britons have four years from the end of the tax year in question to claim a refund, or risk losing out.
But for those due a repayment of less than £10, extra caution should be taken.
This is because HMRC does not automatically issue a repayment, and instead it must be actively claimed.
Individuals, however, have also been warned about scam correspondence which is likely to arise surrounding tax refunds at this time of year.
In previous instances, fraudsters have attempted to target unsuspecting Britons through emails and texts falsely claiming people could be entitled to receive a significant sum back through a rebate.
Scams of this kind attempt to steal the personal and sensitive data of people right across the country.
In this case, the government has warned HMRC only informs Britons about tax refunds through the post, or through pay via an employer.