Are you due a tax refund?

Excitingly, it seems that millions of people paid too much tax in 2012-13 and are now due a refund. Could you be one of the lucky many?

HM Revenue and Customs (HMRC) revealed yesterday that 3.5 million people are due tax refunds averaging £350 and £500. Not pocket change.

Each year the amount of tax and national insurance deducted by employers is tallied with the information on HMRC’s records. This process began this week and will be completed by October.

So how has this happened? HMRC says it only affects those who pay tax as they earn (PAYE) and that the nature of this group means they tend to have changing circumstances, like switching jobs or varying earnings, which will always involve a minority paying too much or too little.

Cheques should start being sent out next month. So keep an eye on your letterbox…