HMRC letter dropping on doorsteps with cash payments 'worth over £680' from Friday

HMRC is sending letters to people across the UK who are owed money from the taxman starting from Friday.

Because the 2023-24 tax year ends on Friday, April 5, His Majesty's Revenue and Customs will begin checking the accounts of millions of taxpayers to ensure they paid the right amount of tax for the tax year ending this week.

There may be myriad reasons why someone has overpaid tax and is owed a repayment from HMRC, including changing jobs, getting married or a mistake made by your employer through PAYE.

Read More: DWP hands out £780 to people on benefits from Monday

Most people in full time work in the UK will have their income tax, National Insurance and other taxable benefits automatically calculated and deducted via PAYE, with employers submitting a P60 to HMRC at the end of every tax year, or a P45 for the end of your employment with a specific employer.

Although if you earn other income like renting out a property or making money on a 'side hustle', or you're self employed, you will have to submit a self-assessment tax return each January.

If you’ve paid too much or too little tax by the end of the tax year, April 5, HM Revenue and Customs will send you either, a tax calculation letter also known as a P800 or a Simple Assessment letter. This will tell you how to get a refund or pay tax you owe.

If you're due a refund you will have to claim the refund and go online with a valid Government Gateway ID, your National Insurance number and a payslip or P60 and a valid driving licence or passport.

The money will automatically then be paid out to your nominated bank account within 14 days.

According to research by Canada Life, the average amount owed to people who have overpaid tax to HMRC is £689, so it is definitely worth keeping an eye out for the letter hitting your doorstep. Of course, the amount you're owed could be even more than this - or even less - depending on your situation, given that this is an average of payouts.