Hundreds of thousands of households could be missing out on tax refunds – here’s how to check if some of that money belongs to you

Households across the UK are being urged to check whether they have overpaid tax, after new figures from HM Revenue and Customs (HMRC) revealed that hundreds of thousands of refunds are still sitting unclaimed.

The numbers are significant. Around 730,000 taxpayers missed out on refunds last year, with the average repayment worth £855. In total, that adds up to an estimated £624 million that should have gone back into people’s pockets.

At a time when many households are carefully managing every pound, £855 is not small change. The thing to know is that refunds do not always arrive automatically. In many cases, you need to take action to get what you are owed.

Why refunds get missed

Most employees pay tax through the PAYE system, where deductions are taken directly from wages or pensions. It is designed to be straightforward, but it is not foolproof. Changes in your circumstances can easily lead to paying more tax than necessary, and many people assume the system will correct itself without checking.

Common reasons for overpaying include:

• Being on the wrong tax code

• Not receiving your full personal allowance

• Changing jobs or working hours during the year

• Not working for the full tax year

• Having an incorrect amount of state pension included in your tax code

None of these are unusual life events, which is why this issue affects so many people.

How to know if you are owed money

If HMRC believes you have paid too much tax, they will usually send a P800 tax calculation letter explaining how much you are due back. However, receiving that letter is not the end of the process. You still need to check the details and, in many cases, actively claim the refund.

If you think you may have overpaid but have not received a P800, you can still check your position. Claims can be made for up to four years from the end of the relevant tax year, so it is worth looking back rather than assuming it is too late.

How to get your refund

Once you have confirmation that you are owed money, the process itself is relatively straightforward. The fastest way to receive your refund is through your online personal tax account or the HMRC app, where payments are typically made within five working days.

Cheque payments are also available, although - note of caution - they can take up to six weeks to arrive. One detail that often gets overlooked is that refunds sent by cheque still need to be cashed. Recent figures showed that more than 170,000 people missed out on their tax refunds in 2025/26 simply because they did not cash the cheque.

That is a reminder that refunds do not always arrive in the easiest format, and sometimes the only thing standing between you and your money is a letter sitting unopened or a cheque that never made it to the bank.

A simple financial health check

Checking your tax position does not require specialist knowledge, and doing so can put money back into your household budget. If your income, job, or working hours have changed in the past few years, it is worth taking a few minutes to make sure everything is correct.

This is your money, and if you have paid too much, you deserve to see it back in your bank account. Taking a few minutes to check is one of the simplest ways to stand up for your own finances.