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HMRC confirms letter about 473 payments sent to thousands is genuine

HM Revenue and Customs has said that 700,000 people are due to be paid back hundreds - but they need to take action to claim it

[People are being urged to claim back money from HMRC]

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People are being urged to claim back money from HMRC(Image: Getty Images)

HM Revenue and Customs has informed 700,000 people that they are owed payments averaging 473 - but they must take action to claim them. In a recent post on X, officials advised workers that hundreds of thousands of letters were dispatched earlier this year, notifying recipients that they are entitled to a refund.

The P800 letters are sent to individuals who are owed tax, and the government body has confirmed that the average claim amounts to a considerable 473. A spokesperson for HMRC said: "We wrote to customers this summer to inform them they are due a refund, and need to claim it. Customers can follow the straightforward instructions in the letter, which explain how they can quickly and easily claim it online on GOV.UK or via the HMRC app."

The letter in question is the P800 Tax Calculation. These are issued to those who have either overpaid or underpaid tax, according to HMRC.

It provides a thorough breakdown of the discrepancy in your tax calculation and outlines how to resolve it, whether by reclaiming overpaid tax from HMRC or settling any outstanding tax liability.

Reasons individuals overpay tax include:

• Having more than one job in a tax year.
• Changing jobs and your new employer not getting your details in time.
• Stopping work part way through the year.
• Having savings interest or certain benefits taxed incorrectly.

Guidance on how to proceed is typically contained within the letter and can also be found on the Gov.uk website. Alternatively, the letter may indicate that HMRC will be sending a cheque, in which case there is no need to contact the department to claim your refund, as the cheque should arrive automatically within 14 days of the date on your letter.

In a fresh post on X today, HMRC stated: "Remember getting a letter about a tax refund but didn't do anything about it? Last year, almost 700,000 people didn't claim back the money they're owed. Download the HMRC app to check."

Earlier this summer, HMRC revealed that close to one million individuals had yet to claim their tax rebate. Around four million P800s were set to be sent out this summer, with the last tranche due to arrive by 30 November 2025.

These letters are exclusively sent to those in employment or drawing a pension. Anyone else registered for Self Assessment tax returns will see their tax bill amended automatically.

Tax rebates can reach into the thousands and claims may be backdated for up to four years. Consequently, people who received P800 letters dating back to 2021 could still be entitled to reclaim their funds.

BBC Radio 4 Money Box Journalist Dan Whitworth has said: "These are known as P800 letters. They are sent when HMRC believes you've overpaid tax, often due to changes in your employment or circumstances that haven't been reflected immediately in your tax code. Mr Whitworth said: "If you get one of these letters, the advice is simple: check it carefully. You can log in to your personal tax account or the HMRC app to confirm the refund and have it paid directly into your bank.

For those unable to use online services, you can contact HMRC by phone on 0300 200 3300 or by post to Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS".. "These letters are genuine and could mean you are owed hundreds of pounds. ".

With P800 correspondence increasingly arriving through letterboxes, specialists have cautioned about criminals taking advantage of the circumstances. Money-Saving Expert has emphasised that fraudsters might try to pose as HMRC and present these reimbursements through text messages, emails or telephone calls.

Nevertheless, this serves as an obvious red flag for a possible scam, since HMRC invariably communicates with taxpayers through the postal system when tax refunds are due, rather than electronically, though claims can be processed online. HMRC will never demand payment nor contact you unexpectedly to verify bank account information.

The Gov.uk website offers an online verification facility where people can check whether they're entitled to a tax rebate from prior years. The majority of tax reimbursements arise because individuals have paid excessive income tax owing to difficulties throughout the tax year, such as switching employment or having several income streams.

This might encompass excessive tax payments on pensions, employment earnings, redundancy pay, UK earnings for expatriates, overseas earnings for UK residents, and interest from savings accounts or payment protection insurance claims. A prevalent cause of incorrect tax payments stems from having an erroneous tax code.

HMRC assigns each person a tax code based on their earnings, which determines their personal allowance. This allowance represents the amount one can earn annually before income tax becomes payable.

The code 1257L is the most widespread and relates to those with just one income stream from either employment or a pension. It indicates their personal allowance stands at 12,570.

Codes containing 'W1', 'M1', or 'X' denote emergency tax codes, which might be applied following a job change or a shift from self-employment to salaried work. While these codes are intended as temporary measures, they do affect your tax liability during their application.

To check if you're owed money click here.

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