Tens of thousands of Brits are set to start their seasonal jobs over the next few weeks, with HM Revenue and Customs (HMRC) now encouraging workers to use their app to save them time when finding details to pass on to their employer. In the 12 months up to October 2022, HMRC received almost three million calls from people asking for information that is now readily available on the app, with over 340,000 using it to access employment and income information since July. This comes as the current economic pressures, alongside the long-term effects of the pandemic, severe delays within HMRC, and a string of changes to the tax system have wreaked havoc and delayed the returns and refunds for millions of taxpayers across the board.
In light of this, Tommy Mcnally, leading tax expert and CEO of Tommys Tax, explains that amidst the downturn alongside surging living and energy costs, tax returns and refunds could act as a vital lifeline for families struggling to make ends meet. Serving as a clear testament to this, proprietary research from Tommys Tax revealed that over a quarter of Brits have admitted they’re struggling to keep up with costs and haven’t started thinking about their tax refund.
With millions of households being forced to tighten their purse strings as average energy prices are projected to reach £5000 a year, Tommy asserts that there is not enough support provided for CIS, PAYE and self-employed workers within the UK. He also explains that so much money goes unclaimed due to the simple fact that tax can appear a complex area – with reports finding that £20bn of tax perks remain unclaimed each year.
Tommy Mcnally, CEO of Tommys Tax, explains why this is a critical period for Brits to become more educated about the tax process:
“The continuous changes to the tax system – from September’s disastrous mini-Budget to the Autumn Statement – have caused wait times to soar when contacting HMRC at a time when many have questions about the process. There is still is a huge knowledge gap when it comes to the tax process, and our research highlights this.
“In general, people across the UK will be looking at tax refunds as a means to cope with the cost-of-living crisis, and for a majority, this could inject a much-needed boost into their bank accounts. However, our research shows that across the board there is still an obvious lack of knowledge when it comes to the process – which is worrying given that the average tax refund for a PAYE worker stands at a staggering £1,518.
“A majority of taxpayers will be looking for rebates as an urgent lifeline to alleviate their financial strain – meaning that it’s more important than ever to stay well-informed in relation to the entire process and what this means for your taxes. With so many unregistered agents out there, I’m sure that many people are wondering whether they’ll be able to claim their rebates back in time – that is why we’re here to help with the entire process for workers across the country. One of the ways we help is by educating customers about the various tax rebates that people are eligible for, but don’t make use of and that is where we’re here to help. Taxes can be boring, confusing and anxiety-inducing, but if done right could make a real difference to people’s lives.”
