Brits who paid income tax or student loans could be owed hundreds - here's how to check
With budgets stretched to breaking point to deal with the exorbitant cost of living Brits are having to put up with you can't really afford to be spending more than you need to.
Some of these payments are automatically deducted from your earnings so you might assume that because they're part of a system running in the background it's all fine, but for many it isn't.
Overpaying the likes of income tax or your student loans is something you might not notice as it's running in the background, but it matters if you're missing out on money.
Money Saving Expert reported that during the 2024/25 tax year there were around 4.2 million Brits who overpaid their income tax, and HMRC had to pay refunds of around £3 billion out to this bunch.
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In the same span of time government records indicate that 721,100 people got a refund for overpaying student loans, with £175.2 million repaid in total.
There are several reasons why you might overpay something that's meant to be calculated automatically, and it includes the possibility that you switched jobs or have multiple income streams which can mess up HMRC's calculations.
In some cases they will recognise this themselves and you'll get a P800, a tax calculation letter, which means you'll either have a cheque coming or you'll need to make an online claim.
You can also go on the government's website and check this out yourself to work out whether you're paying what you should, or if there's a refund in the offing.
If you've been overpaying your student loan then you can request a refund from them, as the Student Loan Company will be told by HMRC and should get in touch with you if you've dropped back below the threshold for repayments.
You should especially check if the amount you earn fluctuates from month to month, as you might be above the threshold for some months but be below it for the year.
If you're getting close to paying off your loan then it's also worth checking, since the time it takes for the data to catch up can be weeks which means you may be paying out after you've paid it off.
Of the many people who've overpaid their student loans at some point through the years many of them missed out on money by never claiming.
The people in the 2024/25 tax year who got their refunds received on average £240.
If you find out you've overpaid a tax or loan then don't wait for it to be figured out on the other end, go onto their site and request a repayment.
Joe Harker