Who gets money back from HMRC

You are owed a tax refund if you have paid more income tax to HMRC than you actually owed for the tax year. This happens most often when your employer has deducted too much from your wages, or when you have stopped work partway through the year but paid tax on a full year's allowance. Self-employed people sometimes overpay if their income drops or if they have claimed fewer expenses than they were may have access to to.

The tax year in the UK runs from 6 April to 5 April the following year. HMRC calculates what you owe based on your total income, your personal allowance (the amount you can earn tax-free), and any other reliefs or deductions you are may have access to to claim. If the tax already taken from your pay or paid in instalments is more than that figure, the difference is yours to claim back.

You do not automatically receive a refund. HMRC will only send one if you ask for it, or if they spot the overpayment during a routine check. Most people have to contact HMRC themselves to request it.

Key Takeaways

  • You are owed a refund if tax deducted from your wages or paid in instalments exceeds what you actually owed for the tax year.
  • HMRC will not send a refund unless you request one or they discover the overpayment during a check.
  • You can check what HMRC thinks you owe by logging into your personal tax account online, which shows your tax code and deductions.
  • Refunds are normally paid into the bank account HMRC has on file, and take between 5 and 10 working days to arrive once approved.
  • If you left the UK or stopped working, you may need to file a Self Assessment tax return even if you do not normally do so.

How to check if you have overpaid

The fastest way to see whether HMRC thinks you have overpaid is to log into your personal tax account on the HMRC website. You will need your National Insurance number and a Government Gateway password. Once logged in, you can see your tax code, how much tax has been deducted, and whether HMRC has recorded a refund owed to you.

If you do not have a personal tax account, you can create one using your National Insurance number and passport or driving licence. The account shows your current tax position and any refunds HMRC has already identified. However, HMRC does not always spot overpayments automatically, particularly if you have had multiple jobs or stopped work during the year.

If your account does not show a refund but you believe you have overpaid, you will need to contact HMRC or file a Self Assessment return. Keep payslips from all jobs you held during the tax year, as these show the tax deducted and will be needed to support your claim.

When you must file a Self Assessment return to claim back

Most employees do not need to file a Self Assessment return because their employer handles their tax through PAYE (Pay As You Earn). However, you must file one if you want to claim a refund and any of the following explore: you left the UK during the tax year, you stopped working before 5 April and want to reclaim unused allowance, you had more than one job at the same time, or you are self-employed.

Filing a Self Assessment return is how you tell HMRC about all your income for the year and claim any reliefs or expenses you are may have access to to. Once you submit it, HMRC calculates whether you have overpaid. The return must be filed by 31 January following the end of the tax year (so for the 2023–24 tax year, the important date is 31 January 2025).

You can file online through your personal tax account or using commercial tax software. If you file late, HMRC may charge a penalty, though they sometimes waive these if you have a reasonable excuse. Filing online is faster and HMRC will tell you when ready whether you owe money or are owed a refund.

How much you can claim back and what counts as overpayment

The amount you can claim back is the difference between the tax you actually paid and the tax you owed. This is calculated using your personal allowance for the year (currently £12,570 for most people, though it is lower if your income is very high), your tax bands, and any other reliefs you are may have access to to claim.

Common reasons for overpayment include: your employer applied the wrong tax code, you worked for only part of the year but paid tax as if you worked the full year, you had two jobs and your allowance was used up in one of them, or you paid tax on income that should have been covered by Marriage Allowance or another relief you did not claim.

You cannot claim back tax on income you did not earn, and you cannot claim back National Insurance contributions (these are separate from income tax). However, if you paid tax on income that later turned out to be non-taxable—for example, if you received a refund of overpaid contributions to a pension—you may be able to claim that back.

How long it takes to receive your refund

Once HMRC approves your refund, it normally takes between 5 and 10 working days for the money to reach your bank account. HMRC will pay it into the account they have on file for you, which is usually the one your employer used to pay your wages. If you have changed banks since you last worked, you may need to update your details with HMRC before submitting your claim.

If you file a Self Assessment return online, HMRC will tell you when ready whether you are owed a refund and will usually process it within a few weeks. If you file on paper or if HMRC needs to check your claim, it can take longer—sometimes several months. You can check the status of your refund by logging into your personal tax account.

If you are owed a large refund and HMRC suspects there may be an error, they may contact you to verify the information before releasing the money. This is normal and does not mean your claim is wrong.

Refunds for people who have left the UK

If you have left the UK and are no longer a UK resident, you can still claim a refund for overpaid tax from previous years when you were resident. However, the process is different and you will need to contact HMRC directly rather than using your personal tax account.

You will need to write to HMRC with details of the tax year you are claiming for, your National Insurance number, your UK address at the time, and evidence of the tax you paid (payslips or P60 forms). HMRC will then calculate whether you are owed a refund. Refunds to overseas bank accounts can take longer to process, and HMRC may ask for additional information to verify your identity.

If you left the UK partway through a tax year, you may also be may have access to to a refund of unused personal allowance. This is calculated based on the number of months you were resident in the UK during that tax year.

What to do if HMRC refuses your refund claim

If HMRC rejects your refund claim, they will send you a letter explaining why. Common reasons include: the claim was made outside the time limit (usually four years from the end of the tax year), the information you provided did not match their records, or HMRC believes you do not have a valid reason for the overpayment.

If you disagree with HMRC's decision, you can ask them to reconsider. Write to the address on their letter and explain why you think the decision is wrong. Include any new evidence, such as payslips or bank statements, that supports your claim. HMRC will review your case and send you a new decision.

If you are still unhappy after that, you can appeal to the Tax Tribunal, which is independent of HMRC. You will need to submit your appeal within 30 days of HMRC's final decision. The Tribunal can order HMRC to pay your refund if they agree with you.

Frequently Asked Questions

Can I claim a refund from more than one tax year ago?

Yes, but only going back four years from the end of the tax year in question. So in 2024, you can claim for the 2019–20 tax year and later. HMRC can go back further if they believe you have deliberately underpaid tax, but you cannot claim refunds older than four years.

What if my employer has already corrected my tax code and I do not think I overpaid?

Check your personal tax account to see what HMRC has recorded. If your tax code was corrected partway through the year, you may still be owed a refund for the months when the wrong code was in place. Your payslips will show the tax deducted each month.

Do I need to pay tax on the refund itself?

No. A tax refund is money that was overpaid in the first place, so it is not treated as new income and you do not pay tax on it.

What if I think HMRC has my wrong bank details?

Log into your personal tax account and check the bank details HMRC has on file. You can update them there. If you cannot access your account, call HMRC on 0300 200 3300 and they will update your details over the phone before processing your refund.

Can I claim a refund if I was working illegally or without a visa?

You can claim back tax you overpaid, but HMRC may use the information you provide to investigate whether you were working legally. If you are concerned about this, speak to an immigration adviser before contacting HMRC.