Probably Our Most Common Question: Why Would I Be Due A Tax Refund?
The first reason and main why is HMRC could have made a hiccup with your tax code in the last 4 years, you haven’t checked it and are due some money back. This happens more often than you think! with shocking statistics like 3/4 nurses who apply being on the wrong tax code, there’s quite a high probability that somewhere along the line you’ve been on the wrong code.
The other is you might not know there are special allowances, (or were special allowances as some of them have gone now) you were entitled to ask for so you paid less tax for that period of time, if you follow.
If you didn’t know about these allowances, there’s no way you could have asked HMRC to put them in your tax code so they give you the wrong code. That meant you paid MORE tax than you needed to.
And that means you’re OWED money.
The good news is it’s not too late to get your money back because HMRC lets us go back up to 4 years to claim any allowances you missed out on, or to correct any mistakes.
The problem you’ve got is unless you know what to look for, you won’t spot any mistakes and unless you know what allowances you were entitled to, you can’t ask HMRC to let you have them! That means any money you overpaid is going to stay in HMRC’s bank account, instead of yours! HMRC also gives you a deadline to claim your money back. If you miss it, they’ll keep your money!