HM Revenue and Customs (HMRC) is encouraging workers throughout the UK to watch out for one specific letter that could indicate they’re entitled to an average of £473. Both self-employed people and employees could receive correspondence from HMRC informing them they’re eligible for a tax rebate.

Generally, you’re entitled to money back on the tax you contribute annually if it’s been discovered that you paid more than you should have. This can occur due to numerous factors, such as being placed on an incorrect tax code which determines how much you contribute to HMRC from your salary through the PAYE system.

Bear in mind that you only have four years from the conclusion of each tax year to claim a rebate for an overpayment. This means workers who are entitled to an overpayment from the 2021/22 tax year have until April 5, 2026 to submit a claim whilst a 2024/25 overpayment can be claimed up until April 5, 2029.

Posting on X, HMRC said: “Received a letter saying you have a tax refund to claim? There could be an average of £473 waiting for you.

“Download the HMRC app to find out how you can claim it. “.

How to claim a tax rebate

If you have already received correspondence from HMRC telling you you’re entitled to money through a tax rebate, you can claim it swiftly online via the HMRC app.

This app also enables you to verify your tax code, National Insurance Number, benefits, and more. For those who are self-employed, the app can also be utilised to make a self-assessment payment or establish a reminder for such a payment.

If you’ve not yet received a letter informing you of a refund, you can verify if you’ve overpaid tax via HMRC‘s online service here.

This tool can allow you to check if you paid too much on:

• A Self Assessment tax return
• UK income earned before leaving the UK
• Foreign income
• Income from a life or pension annuity
• A pension
• UK income if you live abroad
• A redundancy payment
• Job expenses such as working from home, fuel, work clothing or tools
• Interest from savings or payment protection insurance (PPI)
• Pay from a job

Scam warning

Some fraudsters may attempt to trick HMRC customers into thinking they’re owed a tax refund when they’re actually not. HMRC has highlighted that it will not contact customers through email, text, WhatsApp or on the phone to talk about a tax refund. If you are contacted about a tax refund and you have suspicions, you can double-check directly with HMRC or through the HMRC app.