Households have been told they could be owed thousands in tax refunds by HMRC after the average refund rose by 6.1 per cent last year.

The latest data release by tax specialists, RIFT Tax Refunds, has revealed that the average taxpayer could be owed as much as £1,562 by HMRC.

You may be owed a tax refund for a range of reasons, such as overpaying tax via PAYE, however, the most common reasons are for expenses incurred while working.

These can range from fuel costs to accommodation, as well as any work-related uniform expenses incurred.

Glasgow Times:

While anyone could be owed a tax refund, some of the most common sectors include the armed forces, those working either offshore or in construction, as well as those working within the security sector.

Bradley Post, MD of RIFT Tax Refunds, commented: “Despite a drop in inflation, the cost of living remains a substantial obstacle for many to overcome on a month to month basis and households across the nation are yet to see the cost of their monthly outgoings drop.

“What many don’t know is that they could be owed a sizable refund from HMRC and what’s more, this refund can be back-dated for up to four years.

“So while this year’s tax deadline has been and gone, there’s still time to apply ahead of next year to ensure you don’t miss out on another year’s refund, a refund which is rightfully yours.”

How to check your tax code

You can find your tax code on your latest payslip or on your P45 if you recently quit your job.

You can also find it on but first must register for a government gateway ID.

Letters in an employee’s tax code refer to their situation and how it affects their Personal Allowance. The full list of tax code letters and what they mean can be found on the GOV.UK website.

These are the most common letters, and what they mean:

  • L - For an employee entitled to the standard tax-free Personal Allowance
  • S - For an employee whose main home is in Scotland
  • BR/ SBR - For a second job or pension
  • 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
  • T - When HMRC needs to review some items with the employee

How to claim back tax

If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service.

HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip.

You can also claim back up to four additional years if you have been overpaying for some time.