Who gets a tax refund and when

You get a tax refund when you have paid more income tax to HMRC (Her Majesty's Revenue and Customs) than you actually owed for the tax year. This happens most often if your employer took too much tax from your wages, you stopped work partway through the year, or you had multiple jobs and overpaid. Self-employed people and those with investment income can also receive refunds if they have paid more than they owe.

The tax year in the UK runs from 6 April to 5 April the following year. HMRC processes refunds after the tax year ends, once they have reviewed your tax return or payroll records. You do not need to do anything to trigger a refund if HMRC has your correct information — they will calculate what you are owed and send it to you.

If you think you have overpaid, the first step is to check your tax code and your payslip. Your tax code appears on your payslip and tells your employer how much tax-free income you have for the year. If the code is wrong, that is usually why you have overpaid.

Key Takeaways

  • HMRC will send you a refund automatically if their records show you have overpaid, without you needing to request one.
  • Check your tax code on your payslip first — an incorrect code is the most common reason for overpayment.
  • If you are employed, use the HMRC online tool to check your tax position, or contact HMRC directly with your National Insurance number.
  • Refunds are usually paid into the bank account HMRC has on file, and can take four to six weeks to arrive after HMRC processes your claim.
  • If you are self-employed, you claim a refund through your Self Assessment tax return, which you must file by 31 January after the tax year ends.

Checking if you have overpaid as an employee

If you are employed, the quickest way to check your tax position is to use the HMRC online service. You will need your National Insurance number and a way to verify your identity — either a Government Gateway account (which you may already have if you have used any HMRC service online) or a mobile phone number to receive a security code.

Log in to your HMRC account and select "Check your Income Tax" or "View your tax account". This shows you how much tax you have paid so far in the current tax year, how much you should pay, and whether you are owed a refund. If the figure shows a refund due, HMRC will usually process this automatically without you needing to do anything further.

If you do not have an online account or prefer to speak to someone, you can call HMRC on 0300 200 3300. Have your National Insurance number ready. They will ask you questions about your income and work history to confirm your tax position. If you have overpaid, they will tell you how much you are owed and when to expect the refund.

Correcting a wrong tax code

A wrong tax code is the most common reason employees overpay tax. Your tax code tells your employer how much of your income is tax-free. The standard code for the 2024/25 tax year is 1257L, which means you have £12,570 of tax-free income. If your code is lower than this without a good reason, you are paying tax on income you should not be.

Common reasons for a wrong code include: HMRC has not been told you left a previous job, you have a second job that HMRC does not know about, you have received a pension and HMRC has not updated your records, or you have claimed a personal allowance you are not may have access to to.

If you think your code is wrong, contact HMRC and tell them what has changed. They will ask for evidence — a P45 from a previous employer, a letter from your pension provider, or proof that you have stopped work. Once they have this, they will issue a new code to your employer, usually within two weeks. Your employer will then adjust your tax from the next payslip onwards. If you have already overpaid in the current year, HMRC will refund the difference.

Claiming a refund as a self-employed person

If you are self-employed, you claim a refund through your Self Assessment tax return. You must file this return by 31 January after the tax year ends — for example, by 31 January 2025 for the 2024/25 tax year. You can file online through your HMRC account or on paper, though online is faster.

When you complete your return, you enter your total income and any allowable expenses. HMRC calculates how much tax you owe based on this. If you have already paid more than you owe — through payments on account, a lump-sum payment, or tax paid through PAYE from another job — the return will show a refund due. You do not need to request it; HMRC will process it once they have received and checked your return.

Self Assessment refunds usually take four to six weeks to arrive after you have filed your return, though this can be longer during busy periods (January to April). HMRC will pay the refund into the bank account you have registered with them. If you have not registered a bank account, they will send a cheque instead, which takes longer.

How long a refund takes and where it goes

Once HMRC has confirmed you are owed a refund, the payment usually arrives within four to six weeks. This applies whether you are employed or self-employed. The refund is paid into the bank account HMRC has on file — the one you provided when you registered for Self Assessment, or the one your employer gave to HMRC for your payroll records.

If HMRC does not have a bank account for you, they will send a cheque instead. A cheque takes longer to arrive and longer to clear once you have paid it in — typically two to three weeks for the cheque to arrive, then another three to five working days to clear.

If you have changed banks since you last gave HMRC your details, update your account online or contact them directly. Sending a refund to an old account can cause delays. You can update your bank details through your HMRC online account under "Your details" or by calling them.

What to do if you have not received your refund

If four to six weeks have passed since HMRC confirmed your refund and the money has not arrived, check your bank account carefully — sometimes refunds appear under a different name or reference. Search your statements for "HMRC" or "HM Revenue".

If the money is definitely not there, contact HMRC and give them the date you filed your return or the date they told you a refund was due. They can check whether the payment has been sent and, if so, where it went. If the refund was sent to an old bank account, HMRC can ask your bank to recall it and resend it to your current account — this usually takes a further two to three weeks.

If HMRC has not yet processed your refund, ask them for a timescale. During busy periods (especially January to April), processing can take longer than the standard four to six weeks. If there is a genuine delay beyond this, HMRC may pay interest on the refund, though this is not automatic — you may need to request it.

Refunds for VAT and other taxes

This article covers income tax refunds for UK residents. If you are claiming a VAT refund as an international visitor or business, that is a separate process handled differently — VAT refunds are usually claimed at the airport or through a VAT refund company, not through HMRC's standard refund route.

If you have overpaid other taxes — such as National Insurance, Capital Gains Tax, or Inheritance Tax — contact HMRC directly. The process is similar to income tax refunds, but the timescale and evidence required may differ depending on the tax type.

Frequently Asked Questions

Do I have to request a refund or does HMRC send it automatically?

HMRC sends refunds automatically if their records show you have overpaid. You do not need to request one. However, if HMRC does not have complete information about your income — for example, if you have not told them about a second job — you may need to contact them or file a Self Assessment return to claim the refund.

What if I am owed a small refund, like £10 or £20?

HMRC will still process small refunds, though they may take longer to arrive. If the amount is very small (under £10 in some cases), HMRC may hold it and offset it against tax you owe in future years instead of sending it to you. You can ask them to send it anyway if you prefer.

Can I get a refund if I have not filed a tax return?

If you are employed and HMRC has your payroll information from your employer, you do not need to file a return to get a refund — HMRC will process it automatically. If you are self-employed or have other income HMRC does not know about, you must file a Self Assessment return to claim a refund.

What happens if HMRC says I owe tax instead of a refund?

If HMRC's records show you owe tax rather than being owed a refund, you can ask them to explain why. This might be because they have information about income you did not declare, or because your tax code was lower than it should have been. You can dispute their calculation if you believe it is wrong, and you have the right to appeal.