HMRC is encouraging taxpayers to ‘skip the bank trip’ by following a straightforward step that could accelerate tax rebate payments. These one-off sums are typically distributed when people have overpaid tax, potentially due to employment changes, incorrect tax codes, or multiple sources of income.
Whilst HMRC typically posts letters to those entitled to a tax rebate, it’s equally crucial to review earnings and financial records to prevent overpayment. An easy way is to inspect the tax code shown on a payslip and confirm it’s correct for your circumstances.
HMRC calculates each individual’s code using their ‘tax-free Personal Allowance and income’ on which they haven’t paid tax. This encompasses untaxed interest and part-time earnings, alongside the value of perks such as a company vehicle.
At present, the most common code for those with a single job or pension is believed to be ‘1257L’. Here, the ‘L’ indicates entitlement to the standard tax-free Personal Allowance – the sum one can earn annually before taxation applies. This amount currently stands at £12,570, which accounts for the ‘1257L’ code.
Taxpayers can verify their codes via GOV.UK or the HMRC App. Those who believe they have been incorrectly taxed on their income can complete an online form on the Government’s website to claim a refund. Specialists at RIFT disclose that the average amount reclaimed in tax rebates across the UK totals £3,000, based on its examination using ‘average total claims data for a four-year period’.
What else can you do on the HMRC App?
During 2025, HMRC logged over four million downloads and more than 136 million logins to its app. The department noted that users are predominantly accessing it to handle everyday tax matters, with notable ‘strong growth’ recorded across several key areas.
This encompassed a significant rise in older and retired people checking State Pension forecasts, alongside hundreds of thousands seeking to claim Child Benefit. Storing National Insurance numbers in digital wallets was another popular reason for using the app, though its benefits stretch well beyond this.
According to HMRC’s website, you can use the app to check your:
- Track forms and letters you have sent
- Claim a refund if you have paid too much tax
- Ask HMRC’s digital assistant for help and information
- Update your name
- Update your address
- Save your National Insurance number to your digital wallet
- Check for gaps in your National Insurance contributions and the benefits of paying them
- Check if you can make a payment for gaps in your National Insurance contributions
- Choose to be contacted by HMRC electronically, instead of by letter
- Get an estimate of the tax you need to pay
- Make a Self-Assessment payment
- Make a Simple Assessment payment
- Set a reminder to make a Self-Assessment payment
- Access your Help to Save account
- Use its tax calculator to work out your take-home pay after Income Tax and National Insurance deductions
The HMRC app is available for free on both Apple’s App Store and Google Play. Once a personal ID is created, users can generally access the app by signing in with either a six-digit pin, fingerprint or facial recognition.
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