HMRC: over 730,000 tax refunds went unclaimed, averaging £855

HM Revenue and Customs (HMRC) is reminding people that many do not collect the tax refunds they are owed. Last year more than 730,000 refunds went unclaimed, and the average refund was worth £855. HMRC gave this information in its Employer Bulletin of February 2026.

P800 letters and mailing until November

According to Polish Express, HMRC has urged employees to check their tax calculation letters, known as P800s. The authority is currently reviewing about 45 million PAYE tax accounts to identify people who have paid too much or too little tax. P800 letters have started going out and are due to continue until November 2026.

Cases of people who overpaid are handled first, so they will hear from HMRC earlier than those who underpaid.

A refund does not always arrive automatically

Receiving a P800 does not mean the money will land in your bank account by itself. Polish Express writes that when a case covers several tax years, the employee may have to claim the refund themselves.

HMRC says in its bulletin that for most PAYE customers it no longer sends refunds automatically by cheque, but offers more ways to claim. The quickest is the HMRC app. In the PAYE section, if you are due a refund, a "Claim" button appears showing the amount. After you use it, the money should reach your bank account within a week. People who do not use online accounts can still claim by providing the reference number from their P800 letter and their National Insurance number.

According to GOV.UK guidance, a refund claimed online is paid within 5 working days. If someone asks for a cheque, it can take up to 6 weeks.

Who may be affected

Polish Express highlights about 700,000 workers employed through umbrella companies. They are taxed under PAYE but change assignments and employers more often. This can lead to changes in tax codes and a higher risk of tax being calculated incorrectly.

Beware of scammers

HMRC also warns about related scams. According to Polish Express, the authority does not contact taxpayers by text message or email asking them to collect a refund, so such messages should be treated with caution.

Where someone has paid too little tax, the amount is usually recovered by adjusting the PAYE tax code. This usually means no separate payment is needed.

What this means for you

The rules apply to anyone working in the UK and paying tax under PAYE. That includes many Poles, especially those who change jobs often or work through agencies and umbrella companies. It is worth checking your post and your HMRC account. If a P800 letter says you are due a refund, check in the letter or in the app how to claim it. Open links for claiming a refund only from GOV.UK or the HMRC app, not from text messages or emails.