Urgent Check Required! Over 730,000 Tax Refunds Unclaimed in the UK! UK Plans “War Bonds” Issuance; ASOS Seeks to Recover £7 Million in Tariffs
- TBA
- May 4
- 5 min read
Households urged to make HMRC checks as over 730,000 tax refunds go unclaimed
According to the latest data from the UK tax authority HMRC, approximately 730,000 tax refunds went unclaimed last year, with an average value of around £855 per case—bringing the total unclaimed amount to about £624 million.
In addition, data shows that in the 2025/26 tax year alone, more than 170,000 people missed out on their tax refunds because they failed to cash cheques issued by HMRC. This means many taxpayers may have overpaid taxes without realizing it, prompting HMRC to urge the public to check their tax status proactively.
How tax refunds work
According to HMRC guidance, taxpayers who pay through the PAYE system and are due a refund usually receive a tax calculation letter called a P800. This letter clearly states the amount of tax to be refunded.
After receiving a P800, taxpayers should carefully check whether their tax code is correct and ensure that all eligible work-related expenses have been included. These may include uniforms, tools, professional fees, and business mileage.
However, refunds are not always issued automatically—taxpayers often need to verify the information and submit a claim themselves.
If you have not received a P800 but suspect you may have overpaid tax, the simplest way to claim a refund is through the official HMRC app or your online personal tax account.
Time limits and repayment methods
It is important to note that there is a time limit for claiming tax refunds: in general, claims must be made within four years after the end of the relevant tax year.
Refunds can be issued either by bank transfer or cheque. Online claims are usually processed within five working days, while cheque payments may take up to six weeks.
How to know if you have overpaid tax
Most UK employees pay tax automatically through the PAYE system and do not need to file a tax return. However, overpayments can still occur due to incorrect or outdated tax codes.
Common reasons include:
Incorrect or outdated tax code
Failure to receive full personal tax allowance
Not working for the full tax year
Changing jobs or working hours during the year
For retirees, overpayment may also occur if the tax code incorrectly includes state pension amounts, which can lead to eligibility for a refund.
Rachel Reeves considers war bonds to fund £17.6billion defence spending push
According to multiple media reports, UK Chancellor of the Exchequer Rachel Reeves is considering issuing “war bonds” to raise funds for national defence, as part of plans to significantly increase military spending.
Sources say the UK Treasury is currently examining the proposal and assessing whether it could help raise around £17.6 billion to support the Labour Party’s pledge to increase defence spending to 3% of GDP by the 2029–2030 fiscal year. Under the proposal, both individual investors and financial institutions would be able to purchase bonds specifically designated for national security spending.
UK Defence Secretary John Healey is reportedly supportive of the idea, and it has already been discussed in several recent closed-door meetings. Compared with other funding options—such as cutting welfare spending—“war bonds” are considered to be less politically controversial.
Lord Hain, a Labour peer and former cabinet minister, is understood to have raised the proposal with both the Chancellor and Prime Minister Keir Starmer. His suggestion includes creating a dedicated financing mechanism to issue defence bonds within a controlled scale, with funds strictly allocated to military spending.
Liberal Democrat leader Ed Davey has also expressed support for the concept. He has previously argued that the UK needs to accelerate defence investment and proposed issuing “war bonds” with a maturity of two to three years and interest rates comparable to standard government bonds.
However, Chancellor Reeves has ruled out funding Labour’s defence commitments through tax increases or additional overall borrowing, and has also rejected changes to the pensions “triple lock” policy.
In addition, since Labour MPs have previously opposed cuts to welfare spending, Prime Minister Keir Starmer is not expected to pursue that option. Starmer had promised six months ago to publish a 10-year defence investment plan, but it has yet to be released due to ongoing discussions between the Ministry of Defence and the Treasury.
Asos looks to reclaim £7 million in US tariffs
UK fast-fashion e-commerce group ASOS has announced that it is seeking to recover approximately £7 million in tariffs previously paid in the United States. These costs were incurred during the first half of the financial year ending March 1. The company has formally initiated a refund or compensation process to reclaim the customs duties paid on goods shipped to the US.
This move follows a recent ruling by the US Supreme Court on tariff policy.
According to reports, in February the US Supreme Court ruled that former President Donald Trump exceeded his executive authority by imposing certain import tariffs without congressional approval. Four days after the ruling, Trump reimposed a 10% tariff on imports under a different legal provision (Section 122). The court’s decision has also been seen as opening a potential pathway for companies to seek refunds of previously paid tariffs.
ASOS said these tariff costs had a significant impact on its first-half profits and caused short-term disruption to its supply chain and fulfilment operations during the initial policy shift. Nevertheless, the company stressed that the United States remains a key strategic market and one of its stronger-performing regions in terms of profitability, with long-term growth potential.
To mitigate rising costs, ASOS has implemented several measures, including adjustments to its pricing strategy to maintain competitiveness and support future growth. The company is also managing additional cost pressures linked to geopolitical tensions in the Middle East while continuing to optimise its supply chain and product mix.
In terms of financial performance, ASOS reported a reduced pre-tax loss of £137.9 million, compared with £241.5 million in the same period last year. However, total gross merchandise value (GMV) fell by 9% year-on-year to £1.17 billion. The company also noted early signs of recovery.
In the UK market, GMV declined by 5%, although new customer numbers increased by around 10%. Sales improved further in the third quarter, contributing to a roughly 4% rise in the company’s share price during intraday trading on Thursday.
ASOS stated that it made significant progress in the first half of the 2026 financial year and will continue implementing measures aimed at transforming the company into a leading online fashion platform.
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