HMRC is encouraging millions of taxpayers to verify if they are eligible for a tax refund, with the average refund amounting to £473.

One common reason for potential overpayment of tax is being assigned an incorrect tax code, such as after changing jobs recently.

For the current tax year, the prevalent tax code is 1257L, applicable to individuals with a single job or pension, allowing them an annual tax-free allowance of £12,570.

Various factors, like having a second job or pension, could lead to overpaid taxes due to incorrect allocation of personal allowances.

HMRC has projected sending approximately four million P800 tax refund notifications between June and August. They have highlighted the opportunity for individuals to claim their refunds, emphasizing an average waiting amount of £473.

To determine your tax code, you can refer to your recent payslip, P45 (in case of job termination), or access it on GOV.UK using a Government Gateway ID.

In case of being owed a refund, you can claim it online through GOV.UK by providing the reference number from your P800 letter and National Insurance number. Claims can potentially cover up to four preceding tax years if your tax code was inaccurately applied.

Under specific circumstances, HMRC may consider refunds for more than four tax years, especially if the overpayment was due to their error.

MoneySavingExpert.com has cautioned the public about potential scams involving HMRC impersonation, emphasizing that HMRC typically communicates about owed taxes through official letters, not via text, email, or phone calls.