HM Revenue and Customs (HMRC) is reminding people that they send out two types of letters in June and July each year.
Tax calculation letters
You get one of these if you’ve paid too much or too little tax.
This could happen if you changed jobs, have more than one income, or your situation has changed.
On average, people claim tax refunds of around £473.
Simple Assessment letters
HMRC sends one of these if you’ve underpaid tax and have a straightforward tax situation. Common reasons include:
• State Pension going above your tax-free allowance
• owing bank interest
• getting too many tax reliefs.
The easiest way to claim a refund or pay tax you owe? On the HMRC app
• Check if you’re owed anything
• get refunds straight to your bank account
• see tax calculations
• make payments easily
• update your details.
You can also claim a refund or pay tax by signing into your online tax account.
Last year, nearly 1 million people didn’t claim tax they were owed
Don’t miss out on money that’s yours – always read any letters you get from HMRC.
You can check if you’re owed a tax refund on the HMRC app.
Find out more about Simple Assessment and how to download the HMRC app.
PAYadvice.UK 28/6/2025
According to the Daily Mirror, reported on MSN Money:
“The most common code for the current tax year is 1257L for people who have one job or pension. *This means you can earn £12,570 in one tax year before being taxed*, as this is the current personal allowance.”
However, this advice is not strictly true.
People will read this article and imagine that their monthly wage of (say) £1580 is going to be tax-free until November, when their gross income hits the 12570 mark.
When they notice PAYE deductions in their payslip, they get angry and confused.
They will then ring the tax office and wait 45 minutes on the phone ready to complain that they are being incorrectly taxed on their wages.
Please, popular finance editors: can you try to be more accurate?