HMRC tax refunds have soared and you could be owed thousands

The average tax refund from HMRC reached £1,562 in 2023
-Credit: (Image: Getty Images/iStockphoto)

The average tax refund from HMRC has seen a significant increase over the past year, with the average payout now hitting £1,562.

Tax specialists at RIFT Tax Refunds have released the latest figures showing that the typical tax rebate owed by HMRC in 2023 has risen to £1,562, which is a 6.6% increase compared to the previous year. RIFT highlighted that depending on individual circumstances, some people could be entitled to even more.

Many taxpayers may not realise they're due a refund for various reasons, such as having paid too much tax through PAYE. Common claims include expenses for work, ranging from travel costs to accommodation and uniform expenses.

READ MORE: Amazon's £10 'game changer' air fryer product that adds extra cooking space

READ MORE: You can still get Taylor Swift tickets for her 2024 UK tour

RIFT has pointed out that "thousands of taxpayers" might not know they can claim for the last tax year and also retroactively for up to four years. The average claim for a four-year period is currently more than £3,000.

Bradley Post, RIFT Tax Refunds' managing director, said: "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.", reports the Mirror.

"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."

Sectors with frequent tax refunds reportedly include the armed forces, offshore workers, construction industry, and security sector. Builders are allegedly the most refunded group by HMRC, sporting an average one-year tax refund claim of £1,125, reflecting a 3.7% growth annually.

Likewise, security sector employees witnessed the most substantial annual expansion, with their average one-year claim surging by 3.9% to typically £846. Armed forces members joined them with over £800 as the average one-year claim.

Though offshore workers received the minimum amount for a one-year claim, they still managed to secure, on average, a £753 tax refund from HMRC in 2023. You can check how much tax they paid in the last financial year using the Government's online tool.

Don't miss the biggest and breaking stories by signing up to the Echo Daily newsletter here