India, April 13 -- More than 170,000 taxpayers in the United Kingdom missed out on tax refunds averaging £800 due to administrative hurdles and uncashed cheques issued by HM Revenue and Customs. The issue has sparked criticism over outdated payment systems and communication gaps that leave millions unaware of money owed to them.

What is an HMRC Tax Refund?

An HMRC tax refund occurs when you have paid more income tax than required during a tax year and this usually happens due to incorrect tax codes, job changes, pension payments or overlapping employment. Once identified, HM Revenue and Customs returns the excess amount through bank transfer or cheque.

HMRC Tax Refund Update: Over 178,000 Cheques Left Unclaimed

Recent figures rev...