As of April 2024, HM Revenue and Customs (HMRC) will no longer issue automatic PAYE (Pay As You Earn) tax refunds. This change marks a significant shift in how overpaid tax is handled and requires proactive steps from taxpayers.
What this means for you:
- Active Claims Required: If you believe you have overpaid tax through PAYE, you will now need to actively claim a refund rather than receiving it automatically. This can be done through your Personal Tax Account on the HMRC website, by calling HMRC, or by writing to them.
- Review Your Tax Position: Regularly review your payslips and P60 forms to ensure that your tax code is correct and that you are not overpaying. If you identify any discrepancies, take action promptly to address them.
- Tax Code Adjustments: While HMRC may adjust your tax code for the following year to correct any overpayments, this will not result in an automatic refund. You will need to follow up to claim any excess tax paid.
- Self-Assessment: If you are self-employed or required to submit a self-assessment tax return, ensure that your return accurately reflects your tax position to claim any potential refunds.
How to Claim Your Refund:
- Log in to Your Personal Tax Account: Check if you can claim your refund online.
- Contact HMRC: Call or write to HMRC if you need assistance with your claim.
- Consult a Tax Professional: For complex situations, consider seeking advice from a tax advisor.
If you have any questions or need help with this new process, please contact your usual Moore advisor.