A BBC expert has revealed how millions of Britons could be entitled to hundreds of pounds back from HM Revenue and Customs.
BBC Radio 4 Money Box Journalist Dan Whitworth appeared on BBC Morning Live and disclosed that approximately four million letters have been dispatched by HMRC so far this year.
The P800 correspondence is sent to individuals who are owed tax refunds, with the government department stating that the typical claim amounts to a substantial £473.
Mr Whitworth explained: “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.”
He explained that common reasons people 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.
Mr Whitworth advised: “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.”
An HMRC spokesperson informed BBC Morning Live: “We wrote to around 4 million 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 P800 Tax Calculation is the letter in question. These are dispatched to individuals who have either overpaid or underpaid tax according to HMRC.
It provides a detailed explanation of what went wrong with your tax calculation and how to rectify it, either by claiming back your overpaid tax from HMRC or settling the remainder of your tax bill.
Instructions on how to proceed are typically included in the letter and can also be found on the Gov.uk website. Alternatively, the letter may state that HMRC is sending you a cheque, in which case there’s no need to contact the department to claim your refund as you should automatically receive the cheque within 14 days of the date on your letter.
Earlier this summer, HMRC highlighted that nearly one million people had yet to claim their tax refund. Approximately four million P800s were anticipated to be issued this summer, with the final letters expected to arrive by 30 November 2025.
Only those who are employed or receive a pension will receive these letters. Anyone else registered for Self Assessment tax returns will have their tax bill adjusted automatically.
Tax refunds can amount to thousands, and claims can be backdated up to four years, meaning individuals who received P800 letters as far back as 2021 might still be eligible to claim their money.
As P800 letters continue to land on doormats, experts have issued stark warnings about fraudsters exploiting the situation. Money-Saving Expert highlighted that scammers may attempt to impersonate HMRC and offer these refunds via text, email or phone call.
However, this is a clear indication that it could be a scam as HMRC will always contact taxpayers by post if they are due a tax refund, not online, although the claim process can be completed digitally. HMRC will never request you to make a payment or randomly contact you to confirm banking details.
The Gov.uk website provides an online checker tool where individuals can verify if they are owed a tax refund from previous years. The majority of tax refunds occur because people have overpaid income tax due to complications during the tax year such as changing jobs or having multiple sources of income.
This could include overpaying tax on pension, income from employment, redundancy payments, UK income for those living abroad, foreign income for those residing in the UK and interest from savings or payment protection insurance. One of the most frequent reasons for paying the incorrect amount of tax is having the wrong tax code.
Each individual is assigned a tax code by HMRC which is based on their earnings and determines their personal allowance. This allowance is the amount that you can earn each year before becoming liable for income tax.
1257L is the most prevalent code, applicable to individuals with a single income from employment or pension. It signifies that their personal allowance is £12,570.
Tax codes featuring ‘W1’, ‘M1’, or ‘X’ are emergency tax codes, typically assigned when you’ve switched jobs or transitioned from self-employment to working for an employer. While these tax codes are temporary, they do influence how much tax you pay whilst in effect.
