Tax Rebates & Refunds

If your tax refund is wrong, don’t spend it

January 21, 2013
Posted in Tax Rebates — Written by Jennifer

Most people are absolutely thrilled to receive a tax rebate, especially when they haven’t filed a claim and aren’t expecting it. In the excitement of this unexpected windfall, you may forget to check the details which HM Revenue & Customs (HMRC) provides about your refund. You may simply head out and spend it.

It would be really unwise to spend your tax refund without first checking that it is correct. Whilst HMRC uses all the information it has to calculate tax refunds accurately, mistakes can still occur. It may be that the department has the wrong information about you, your tax code is incorrect, or the tax rebate was simply sent to the wrong person.

If your tax rebate is wrong, the money is not actually yours and you shouldn’t spend it. It is likely that HMRC will realise the mistake and ask for the money back, which can be hugely inconvenient when you’ve already spent it.

So, the next time you receive a tax rebate, check that it is correct. If it is, you can spend the money however you wish, with a clear conscience. If it isn’t correct, you should let HMRC know right away.

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