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
The average tax refund from HMRC has surged over the last year with payouts reaching £1,562.
The latest data released by tax specialists, RIFT Tax Refunds, found that the typical tax rebate owed by HMRC in 2023 increased to £1,562, marking a 6.6% rise from the year before. RIFT noted, however, that depending on your personal situation you could potentially be owed more.
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.
RIFT said “thousands of taxpayers” are unaware that not only can they claim a tax refund for the previous year, but claims can also be retroactively applied for up to four years. The average refund over four years currently exceeds £3,000.
Bradley Post, managing director 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.”
While anyone could be owed a tax refund, RIFT said 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.
Construction workers topped the list of those owed the most by HMRC, with the average one-year tax refund claim coming in at £1,125, marking a 3.7% increase year on year. Meanwhile, security sector employees saw the largest annual increase, with the average one-year claim rising by 3.9% to an average of £846. The average one-year claim for armed forces personnel also surpassed £800.
While offshore workers received the lowest amount for a one-year claim, the average worker still secured a tax refund to the tune of £753 from HMRC in 2023. You can check how much tax they paid in the last financial year using the Government’s online tool.
