Tax refunds for up to 3.5m people

Up to 3.5 million people are set to receive a tax refund from next week, but as many as 1.6 million face a bill for underpaid tax, HM Revenue and Customs (HMRC) has said.

Those who are due a rebate will get an average windfall of £379, while the typical shortfall for those who have not paid enough is £537, under Pay As You Earn (PAYE) adjustments for the tax year 2011/12.