You could be left out of pocket if you do not act
The taxman has issued a stark warning that as many as one million Britons could be missing out on unclaimed tax refunds worth an average of £453 each.
It has also emerged that hundreds of thousands risk losing out simply because they have failed to check their accounts. In a brief post on X this week, HM Revenue & Customs (HMRC) revealed that approximately one million taxpayers have yet to claim money they are owed from overpaid tax – often because they never checked whether they were entitled to a refund.
The government body warned that ordinary workers and pensioners could be left thousands of pounds out of pocket if they fail to act promptly. According to the official alert, the typical sum owed to these taxpayers stands at around £453 per person, with many overpayments resulting from straightforward errors such as being placed on the wrong tax code, changing jobs, or retiring without updating HMRC’s records.
HMRC has stressed that this money will not be paid out automatically – claimants must check their personal tax account on GOV.UK or via the HMRC app and submit a claim themselves.
Officials have also cautioned that fraudsters are exploiting the situation by sending bogus texts, emails or making calls falsely claiming that taxpayers are owed refunds, in an attempt to steal personal and banking details. More than 135,000 HMRC-related scam reports have been logged recently, including around 29,000 involving fake tax refund claims, and the number of fraudulent approaches continues to climb.
Lucy Pike, HMRC’s Chief Security Officer, said: “Millions of people file a tax return each year and scammers mimic HMRC to try and catch unsuspecting victims out. I’m urging people to stay vigilant and if any emails, text messages or phone calls appear suspicious – don’t be lured into clicking on links or sharing your personal information – report it directly to HMRC.”
Experts say thousands are missing out on money simply by ignoring letters or failing to set up online tax accounts – and with scammers operating, the risk of handing over cash to fraudsters is significant. Genuine tax refunds will be communicated through HMRC’s secure system or by post – the department will never request bank or personal details via an unsolicited email or text.
Advisers are urging taxpayers to log into their accounts today – before it’s too late and the unclaimed refunds are lost.