Home Business News HMRC could owe you £1,500 as average tax rebate increases 6.2% annually

HMRC could owe you £1,500 as average tax rebate increases 6.2% annually

by LLB Finance Reporter
31st Jan 23 10:54 am

With the impending self-assessment tax deadline almost upon us, the latest data released by tax specialists, RIFT Tax Refunds, has shown that the average amount owed to UK taxpayers by HMRC has increased by 6.2%, with the average tax rebate now reaching £1,510.

Although with first time claimants able to backtrack up to four years, this refund could be as high as £5,971.

The data by RIFT Tax Refunds shows that the average rebate issued by HMRC has climbed for the first time since 2020.

Between 2019 and 2020 the average tax rebate owed increased from £1,481 to £1,558. Between 2020 and 2021, it then fell from £1,558 to £1,422. However, this downward trend has reversed in 2022, with the average tax rebate increasing by 6.2% to an average of £1,510.

In 2022 alone, RIFT Tax Refunds is estimated to have recovered £60.210m in tax rebates owed by HMRC that taxpayers would have otherwise failed to see.

One of the most prominent sectors within which tax rebates are most commonly owed is the construction sector. The average tax rebate for those working within the sector hit £1,085 in 2022, a 7.4% increase on the previous year.

Other sectors with a high propensity for tax rebate being issued include those working offshore, within the security sector, or for the Ministry of Defence.

The average tax rebate for those working offshore, for example on oil rigs, has increased by 7.2% annually to £827 on average.

Those working within the security sector have seen a 5.1% annual increase in the average rebate and while the annual increase was just 1% for those claiming tax rebate within the Ministry of Defence, the average rebate issued was still a notable £839.

CEO of RIFT Tax Refunds, Bradley Post said, “With the self-assessment deadline now upon us, self-employed workers across the land will be nervously hoping that they’ve correctly submitted the required information and that they won’t incur the wrath of HMRC for any mistakes.

However, the likelihood is that it could well be HMRC that owes you a pound or two, as all too often we fail to claim for a range of legitimate expenses that we are rightfully entitled to. And it’s not just those who are self-employed who qualify, anyone is potentially eligible for a tax rebate regardless of their employment status.

With the average rebate once again topping £1,500, it’s a serious cash sum that could go a long way in helping weather the current economic climate and the high cost of living.

What’s more, if you’ve not claimed a rebate before, you can back claim for the past four years, which can make it an even more worthwhile endeavour.”

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