Employees and pensioners are being encouraged to check whether they are due a PAYE tax refund.
HMRC figures suggest that more than 730,000 PAYE refunds went unclaimed last year, with the average repayment worth approximately £855.
PAYE overpayments can arise for a number of reasons. Common examples include being placed on the wrong tax code because HMRC held incorrect income information; changing jobs during the tax year and being paid by two employers in the same month; starting to receive a workplace pension; or receiving employment and support allowance or jobseeker’s allowance.
In the past HMRC would often issue PAYE refunds automatically. However since 31 May 2024 taxpayers are generally required to claim any repayment due to them. You can claim a refund through the HMRC app; via online bank transfer; through a personal tax account; or by requesting payment by cheque.
It is worthwhile reviewing your PAYE position, particularly if your employment or pension circumstances changed during the year. We can help review your tax position and assist with making a refund claim.
