Average tax rebate tops £1,500 following 6.2% increase

The average amount owed to UK taxpayers by HMRC has increased by 6.2%, with the average tax rebate now reaching £1,510, analysis by RIFT Tax Refunds has shown.

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

According to the data from RIFT Tax Refunds, the average rebate issued by HMRC has climbed for the first time since 2020. Figures show that between 2019 and 2020, the average tax rebate owed increased from £1,481 to £1,558 and between 2020 and 2021, it then fell from £1,558 to £1,422.

In 2022 alone, RIFT Tax Refunds is estimated to have recovered £60.2m in tax rebates owed by HMRC that taxpayers would have otherwise failed to see.

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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