HMRC says nearly one million people are owed £473 after paying too much tax

You can normally claim your refund online, or you can wait for a cheque to be sent in the post

HMRC has issued a reminder to almost one million people who are owed a tax rebate.

In an Instagram post, HMRC explained how it had written to people last year after they had paid too much income tax.

There are lots of reasons why you may have overpaid income tax. The most common is being placed on an incorrect tax code.

If you have overpaid tax, HMRC will normally send you a P800 tax calculation letter, which will explain how to claim your refund.

You can normally claim your refund online, or you can wait for a cheque to be sent in the post.

HMRC said: “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.”

If your tax code is wrong, then you could be owed a refund. Tax codes are used to show how much tax should be taken from your salary before you receive it.

The most common code is 1257L for people who have one job or pension – although not everyone will be on this.

You may have been accidentally placed on the wrong tax code for lots of different reasons. For example, if you’ve recently started a new job, or if HMRC has been given incorrect information about your income.

To find your tax code, check your latest payslip, or your P45 if you have recently quit your job.

If you have overpaid tax and you’re owed money back, you can claim this by contacting HMRC by calling 0300 200 3300, or through the HMRC app.

If you have underpaid tax, you would owe HMRC money as the tax would need to be paid back. It is better to sort this out sooner rather than later to avoid being hit with a bigger bill.

Am I on the right tax code?

• 0T – When an employee has not given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
• BR – For a second job or pension
• C – For an employee whose main home is in Wales
• C0T\u0009- When an employee whose main home is in Wales has not given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
• CBR\u0009- For a second job or pension (Wales)
• CD0\u0009- For a second job or pension (Wales)
• CD1\u0009- For a second job or pension (Wales)
• D0 – For a second job or pension
• D1 – For a second job or pension
• L – For an employee entitled to the standard tax-free Personal Allowance
• M – For an employee whose spouse or civil partner has transferred some of their Personal Allowance
• N – For an employee who has transferred some of their Personal Allowance to their spouse or civil partner
• NT – No tax is deducted
• S – For an employee whose main home is in Scotland
• S0T – When an employee whose main home is in Scotland has not given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
• SBR – For a second job or pension (Scotland)
• SD0 – For a second job or pension (Scotland)
• SD1 – For a second job or pension (Scotland)
• SD2 – For a second job or pension (Scotland)
• SD3 – For a second job or pension (Scotland)
• T – When HMRC needs to review some items with the employee