HMRC letters landing from Monday to 4m and adds 'you must respond'

HMRC letters landing from Monday to 4m and adds 'you must respond' Some people need to reply to the letter which is being sent out from June 1 to workers From today, 1st June, millions of households will begin receiving letters from HM Revenue and Customs — and in some cases, urgent action is required. The tax authority is dispatching approximately 4 million income tax refund letters between June 1 and August 31 - and recipients are being warned they 'must respond' if they're asked for more details - or could miss out. HMRC tax refunds arise when people overpay income tax, typically due to an incorrect tax code, a change of employment, or holding multiple jobs simultaneously. HMRC generally calculates any overpayment following the end of the tax year and issues a P800 letter accordingly. Claiming online via your Personal Tax Account or the HMRC app is the quickest method, with payments usually processed within 5 working days, whereas cheques can take up to 6 weeks to arrive. HMRC has revealed that nearly one million people are missing out on an average of £473 — simply because they have failed to respond to their letter. Claiming online via your Personal Tax Account or the HMRC app is the quickest method, with payments usually processed within 5 working days, whereas cheques can take up to 6 weeks to arrive. While HMRC frequently issues refunds automatically through a P800 letter, individuals with work-related expenses — such as working from home or specialist tools — or those with more complex income arrangements will typically need to make a claim themselves, usually within four years, using either the HMRC app or the relevant claim form on gov.uk. Officials warned: "Remember getting a letter about a tax refund but didn't do anything about it? Last year, almost 1 million people didn't claim back the money they're owed. "On average people get £473 back when claiming a tax refund. Download the HMRC app to check." The HMRC has warned about fake letters also circulating on this issue. It said: "You may get a letter from HMRC asking you to contact us about your repayment claim. We may ask you to send more information to verify your claim. "You must respond to the letter so we can make any repayments owed to you as soon as possible. If you receive further requests for information to be sent to an email address that does not end in ‘hmrc.gov.uk’, they will not be genuine and you should report this to HMRC." Millions of taxpayers overpay tax each year for various reasons, meaning they are owed a rebate from HMRC to return their hard-earned money. The tax authority dispatches letters annually to these individuals, outlining how to submit a claim. Until 2024, recipients had 21 days to respond, otherwise a cheque was posted to their registered address. However, hundreds of thousands of these remain uncashed. The tax office is sending approximately 4 million income tax refund letters between June and August. With fraudsters frequently impersonating HMRC, we walk you through the steps to verify your letter is legitimate and how to claim any money you are owed. HMRC has been striving to reduce the number of cheques it issues in recent years, with the figure falling from 4.1 million in the 2023-2024 tax year. The tax authority began transitioning to a new system in 2024, whereby it endeavours to contact customers through alternative means unless they specifically request a cheque. "Until people do consistently open their HMRC correspondence, there is always going to be a problem and delays with the tax refund process." Most people will receive a P800 letter informing them they are owed a tax rebate around June, following the end of the tax year in April. This instructs the recipient to request payment via a bank transfer called BACS, completed by logging into their government gateway account, which can be opened at any time. Robert Salter, a partner at tax and accountancy firm Blick Rothenberg, said: "It is certainly a bit problematic that HMRC continues to use cheques to settle tax refunds in so many cases." Who's being sent these letters? HMRC is sending tax calculation letters – also known as a P800 – to individuals who are owed an income tax refund. Those who possess an uncashed cheque from HMRC can no longer cash it after six months, but this does not mean it has expired. A replacement can be requested, and there is technically no time limit to cash it. However, it may become more difficult for the tax authority to verify the rebate after nine years. An HMRC spokesperson said: "The vast majority of PAYE repayments are issued via bank transfer, which is now the default option, and the quickest and most secure way for customers to receive their money. "Customers can still request to receive their repayment via cheque and it's their responsibility to cash it if they choose this method." This could affect employees who receive their salary via PAYE, as well as pensioners, who may have overpaid tax on pension income. Overpayments can occur if you: - Were placed on the wrong tax code, for example because HMRC had incorrect information about your income. It's always advisable to verify it's correct with our tax code calculator. - Finished one job, started a new one and were paid by both in the same month. - Started receiving a pension at work. - Received Employment and Support Allowance or Jobseeker's Allowance.