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Many across the UK could be missing out on hundreds of pounds in tax refunds. HMRC has urged taxpayers to check whether they are owed money as nearly one million didn't claim back the money they were owed last year. The tax authority added that on average, people get £473 back when claiming a tax refund. You may be able to get a tax refund if you've paid too much tax.

In a post shared on social media, HMRC said: "Remember getting a letter about a tax refund but didn't do anything about it? Last year, almost one million people didn't claim back the money they're owed. Download the HMRC app to check."

Also known as a tax rebate, this often happens when too much tax is paid through the PAYE (Pay As You Earn) system. There are several reasons why people may be owed money by HMRC.

For example, you may have been placed on the wrong tax code, often due to HMRC not having the most up-to-date information about your income. It can also occur if you switched jobs, are unemployed, and are claiming tax relief for work-related expenses.

Claims can be backdated for up to four tax years. This means that from April, eligible taxpayers may be able to reclaim money dating back to April 2022.

People who believe they may be paying too much tax can check themselves on the GOV.UK website by using the 'how to claim a tax refund' tool. If you have the app, you can also check there and make a claim directly there, which is quicker than getting paid back by post.

People should be aware of when they believe they have paid too much tax and ensure they have their Tax Calculation letter, also known as a P800, to hand if one has been issued by HMRC. Individuals who have not received a letter but believe they have overpaid can contact HMRC directly to request a review and make a claim.

If your P800 says you're due a refund and states that you can claim online, you'll be able to request your money through a bank transfer or ask for a cheque via the official service. To do this, you'll need the reference number shown on your P800, along with your National Insurance number.

Taxpayers can also claim a refund through their personal tax account, use the HMRC app if they have a UK bank account, or contact HMRC directly.

The time it takes to receive the money depends on how you claim. Online claims are usually processed quickly, with payments arriving within five working days. If you choose to receive a cheque instead, this can take up to six weeks to be issued.

In some cases, the letter will confirm that a cheque will be sent automatically. If this applies, there is no need to take any further action, as HMRC will post the payment directly. These cheques typically arrive within 14 days of the date printed on the letter.

If you are owed money from more than one tax year, HMRC will usually combine the total into a single payment rather than issuing multiple refunds.