The HM Revenue and Customs (HMRC) has issued an important alert for UK taxpayers. More than 758000 people across the country are reportedly due an average refund of £2242 each and the deadline to claim is fast approaching in 2025. Many taxpayers are unaware that they are owed money from overpaid taxes and could lose the refund if they fail to act before the deadline.
Who Is Eligible for the HMRC Refund
The refund primarily applies to individuals who have overpaid income tax due to changes in employment, incorrect tax codes or unclaimed allowances. People who changed jobs, worked part-time or received income from multiple sources in recent years are most likely to have overpaid.
HMRC has identified that many people did not check their Personal Tax Account (PTA) to verify their tax status. As a result thousands are still waiting to receive money that rightfully belongs to them.
Average Refund Amount and Payment
The average refund amount stands at £2242 per person though some may receive more or less depending on their tax situation. Refunds are usually issued directly to the claimant’s bank account once verified through the HMRC system.
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How to Claim the HMRC Tax Refund
Claiming a refund is simple and can be done online.
- Visit the HMRC official website
- Log in or create a Personal Tax Account using your Government Gateway ID
- Check for any notifications about tax overpayment
- Submit your claim before the 2025 deadline
Taxpayers can also claim by post but the online method is faster and easier.
Common Reasons for Overpaid Tax
Several factors contribute to tax overpayments including
- Changing jobs without updating tax information
- Working part-time or temporarily
- Receiving pension income or state benefits alongside employment
- Incorrect emergency tax codes applied
- Failing to claim eligible deductions or allowances
Warning from HMRC
HMRC has warned that any unclaimed refunds after the 2025 deadline will no longer be recoverable. Taxpayers are urged to check their tax records immediately to avoid losing their entitlement.
Officials have also cautioned people to beware of fraudulent websites or fake refund emails claiming to be from HMRC. Refunds are only processed through official government platforms.
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Pensioners and Low-Income Workers Most Affected
Reports suggest that many pensioners and low-income workers are among those eligible for refunds. These individuals often overlook tax adjustments after retirement or part-time work leading to unclaimed payments.
How Long the Refund Takes
Once a claim is approved HMRC usually processes refunds within two to four weeks. However incomplete details or verification issues may cause delays.
Checking Past Tax Years
Taxpayers can also check and claim for previous tax years usually going back up to four years. For example if someone overpaid tax in 2021 or 2022 they can still apply before the upcoming deadline.
Expert Advice
Financial experts recommend that all taxpayers review their records regularly and not rely solely on employer deductions. Keeping an eye on one’s tax code and understanding entitlements can help avoid future overpayments.
Final Reminder
The 2025 HMRC refund deadline is a final opportunity for hundreds of thousands of UK citizens to reclaim their overpaid taxes. Those who delay may lose out on hundreds or even thousands of pounds.
Conclusion
The HMRC refund alert serves as a timely reminder for UK taxpayers to review their financial records and act quickly. With an average of £2242 per person at stake claiming before the 2025 deadline could make a significant difference for households across the country.