TAXING TIMES
Millions urged to look out for tax refund alerts NOW – are you owed cash?
HMRC is sending letters to those who may be owed funds for overpaying tax
MILLIONS of Brits have been urged to look out for tax refund letters landing on their doormats NOW.
You could be entitled to a cash refund if you paid too much to the taxman in previous years.
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HMRC tries to update workers' records within 12 months of the tax year ending in April.
It goes through each person's account to see if they have overpaid or underpaid on their tax bill.
If there has been an error and you've paid too much, it will send you a tax refund letter in the post.
Bear in mind though, if you have underpaid and owe money you will also be informed and have to settle the deficit.
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Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “If you are employed or receiving a pension and HMRC thinks you have paid too much tax then they will send you a letter giving you next steps for claiming your refund.
"If you are registered for self-assessment then your bill should be adjusted automatically rather than sending a letter.
"Refunds can either be paid out online or you will be sent a cheque in the post.
"If it is done online then you will probably receive the money around five working days after you make your claim. If HMRC sends you a cheque then it will take longer."
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Tax refund letters should arrive between June and the end of November, so if you haven't received one yet keep your eyes peeled over the coming weeks.
You may have overpaid tax if you were put on the wrong tax code or were paid by two employers in the same month.
Myron Jobson, Senior Personal Finance Analyst at interactive investor, said: “First and foremost, it’s important to know who is eligible for a tax refund.
"Typically, you might be due a refund if you've paid too much tax during the year. This can happen if you're on the wrong tax code – which might arise if you’ve changed jobs, if you have more than one job have multiple or if you have had gaps between jobs, among other factors. Sometimes, HMRC might simply make an error in processing your details."
If you receive a letter it will include a link to the Government's website where you can complete an online form to nominate the bank account you want your rebate paid into.
It should then be around five working days until you receive your payment.
In some cases if you don't complete the form HMRC will send a cheque, your letter will state if this is the case.
You can also request to receive a cheque by email or phone, but this will mean you wait longer for the cash to hit your bank account - usually up to six weeks.
If you've received a letter but don't have access to a computer or phone with internet, you can contact HMRC via phone or post.
The phone number to call is 0300 200 3300 while any post should be addressed to:
- Pay As You Earn and Self Assessment
- HM Revenue and Customs
- BX9 1AS
- United Kingdom
Remember, you don't have to wait for HMRC to contact you by post if you think you're owed a rebate.
You can sign up for a Personal Tax Account and check if you are eligible for a repayment.
You could get your payment earlier this way, rather than waiting for a letter through the door.
If you've got a smartphone, you can track your tax via the HMRC app too.
You should also be regularly checking your payslip to ensure you're on the right tax code, and having the right amount deducted.
It's your responsibility to check and let HMRC know if it's wrong, otherwise you could end up paying out too much.
Each tax code tells you how much you should be paying to HMRC every month.
For example, the letter "L" on your tax code means you're entitled to the standard tax-free Personal Allowance.
Meanwhile, "M" means you’ve received a transfer of 10% of your partner’s Personal Allowance (£1,260).
If you owe money to the taxman HMRC will collect it automatically over the following year if you are in employment, receive payments through a pension provider or owe less than £3,000.
If this is not possible HMRC will write to you with details of how to pay off the funds due.
Beware of scammers
If you do receive a letter through the post between now and November be careful to check that it's legitimate.
Tricksters will bank on households expecting refund letters in the post and try to con people out of money.
Helen added: "It’s important to be aware that this is a fertile area for scammers. Some scammers will send texts or emails asking you to click a link to claim a refund.
"It’s important not to click on any links – instead contact HMRC directly to check any communication is legitimate and they will talk you through the next steps to receiving your refund safely.”
Two giant red flags to watch out for are if your letter comes in a non-brown envelope, or the HMRC address on it doesn't match up.
Another warning sign is if you receive an email pretending to be from HMRC about a tax refund.
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The Government department has previously said it would never contact people via email about a tax refund, so if you get one make sure you ignore it.
Customers have also been urged to watch out for dodgy texts, which ask people to follow a link to claim their tax refund.
How do I file a tax return?
TO file a self assessment tax retun, you'll need to register with HMRC first, which will then issue you with a Unique Taxpayer Reference (UTR).
You must register for self assessment by October 5 if you have to file a tax return and you have not sent one before.
You can do so by visiting www.gov.uk/register-for-self-assessment.
If you've previously registered and already have a UTR, you don't need to go through this step again.
Once you've got your UTR, you can sign in via the "Self Assessment tax return" section of HMRC's website by visiting www.gov.uk/log-in-file-self-assessment-tax-return.
You can then file your self assessment tax return online.
The deadline for sending a return online is January 31 every year.
If you need a paper copy of the main Self Assessment tax return, call HMRC on 03000 200 3610 and request an SA100 form.
The deadline for sending a return using a paper form is October 31 every year.
You need to pay the tax you owe by midnight on January 31 each year.
HMRC accepts your payment on the date you make it, not the date it reaches its account.
File late and HMRC will issue you with a fine.
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