If you have paid more tax than you owe, HMRC owes you money back. It happens more often than you might think. Overpayments can come from employment, self assessment, job expenses, foreign income, or pension lump sums. The key is knowing which route to use and what evidence you need.

This guide covers the main ways to reclaim tax from HMRC in the 2025/26 tax year. We will walk through each scenario, the forms involved, and the practical steps to get your refund processed without delays.

When Can You Reclaim Tax from HMRC?

You may be able to get a tax refund if you have paid too much tax on your pay from a job, job expenses such as working from home, fuel, work clothing or tools, a pension, a Self Assessment tax return, a redundancy payment, UK income if you live abroad, interest from savings or payment protection insurance (PPI), income from a life or pension annuity, foreign income, or UK income earned before leaving the UK [1].

The most common reasons include:

  • Your tax code was wrong and you paid too much through PAYE.
  • You had two jobs and your personal allowance was split incorrectly.
  • You claimed allowable expenses that HMRC had not yet applied to your code.
  • You paid tax on savings interest or dividends above your allowances.
  • You overpaid tax on a pension lump sum or redundancy payment.
  • You lived abroad but had UK income that was double-taxed.

Each scenario uses a different process. We will cover the main ones below.

Using the HMRC Tax Refund Tool

HMRC provides an online tool to check if you can claim a refund. It covers most common situations: pay from a job, job expenses, pensions, Self Assessment, redundancy, UK income if you live abroad, savings interest, PPI, annuities, foreign income, and UK income earned before leaving the UK [1].

You cannot claim a refund using this tool [1]. It is a checker, not a claim form. It tells you what to do next, which may be to use your Personal Tax Account, write to HMRC, or file a Self Assessment return.

If you have already claimed a tax refund, you can use the same tool to check when you can expect a reply [1]. HMRC's processing times vary. Simple PAYE corrections often take 4 to 6 weeks. Complex claims involving foreign income or multiple years can take 3 to 6 months.

Reclaiming Tax on Employment Overpayments

If you paid too much tax through your job, the quickest route is usually through your Personal Tax Account on gov.uk. You can check your tax code, see your estimated income for the year, and report changes such as job expenses or working from home costs.

By law, your employer must deduct tax and National Insurance from your pay and pass it to HMRC [2]. If your tax code is wrong, the deduction will be wrong. Common errors include:

  • Your employer used an emergency tax code (1257L W1 or M1).
  • You had more than one job and your personal allowance was allocated to the wrong one.
  • You changed jobs mid-year and HMRC did not update your code in time.

If the overpayment is small, HMRC will usually adjust your tax code for the next year rather than issue a refund. If the overpayment is larger, they will send a cheque or bank transfer. You can request the refund directly through your Personal Tax Account.

Job Expenses You Can Claim

If you spend your own money on things you need for your job, you can claim tax relief. This includes working from home costs, fuel if you use your own car for business travel, work clothing or tools, and professional subscriptions [1].

For professional subscriptions, HMRC restricts tax relief to 90% of a subscription for employed dentists, for example [3]. Dentists not employed can claim on 100% of the fee [3]. The same principle applies to many other professions where HMRC has approved the body. You can check the full list of approved professional bodies on gov.uk.

All submissions for professional subscription relief must be made by 5 April each year [3]. The tax relief is then reimbursed to you via your tax code for the following year [3]. If you miss the deadline, you can still claim for up to four previous tax years, but you will need to write to HMRC rather than use the online tool.

Reclaiming Tax Through Self Assessment

If you file a Self Assessment tax return, you can reclaim overpaid tax through the return itself. The SA100 form includes sections for employment income, self-employment, dividends, savings interest, and foreign income. If your calculations show you have paid too much, HMRC will refund the difference after you file.

For sole traders and partners, the SA103 (self-employment pages) and SA800 (partnership return) allow you to claim allowable expenses that reduce your taxable profit. If you have been paying tax on gross profit without deducting expenses, you are almost certainly overpaying.

If you discover an overpayment from a previous year, you can amend your return within 12 months of the filing deadline. After that, you need to write to HMRC with a formal overpayment relief claim. This is more complex and HMRC can reject it if you do not provide the right evidence.

Reclaiming Tax on Foreign Income

If you have foreign income that has been taxed in another country, you may be able to claim Foreign Tax Credit Relief from HMRC. This prevents double taxation. The relief is claimed through your Self Assessment return using the foreign pages.

HMRC has been known to check claims for foreign tax credit relief carefully [4]. You need to provide evidence of the foreign tax paid, usually a tax certificate from the overseas tax authority. Without it, HMRC may reject the claim or ask for more information, which can delay your refund by months.

If you live abroad but have UK income, you may also be able to reclaim UK tax. The rules depend on the double taxation agreement between the UK and your country of residence. You should check the specific treaty provisions before claiming.

Reclaiming Tax on Pension Lump Sums

If you take a Pension Commencement Lump Sum (PCLS), the first 25% is usually tax-free. The remaining 75% is taxable as income. If your pension provider uses an emergency tax code on the lump sum, you can end up paying too much tax.

A contract allowing a person to take a PCLS is not listed as a cancellable contract under FCA rules [5]. That means you cannot simply cancel the contract to reverse the tax. You must reclaim the overpaid tax through HMRC instead.

You can do this through your Personal Tax Account or by completing a Self Assessment return. If the overpayment is large, HMRC may issue a refund within 30 days of receiving your claim. If it is smaller, they may adjust your tax code for the following year.

Reclaiming Tax on Redundancy Payments

The first £30,000 of a redundancy payment is tax-free. If your employer taxed the full amount, you can reclaim the overpaid tax. You need to write to HMRC with your P45 and a letter from your employer confirming the redundancy payment breakdown.

HMRC will calculate the correct tax and issue a refund. This can take 8 to 12 weeks. If you have already filed a Self Assessment return for that year, you can amend it to include the correct redundancy figures.

How to Submit Your Claim

The method depends on what you are claiming for:

  • PAYE overpayments and job expenses: Use your Personal Tax Account online. You can also call HMRC or write to them.
  • Self Assessment corrections: Amend your return online or file a paper amendment.
  • Foreign income relief: Claim through your Self Assessment return with supporting evidence.
  • Pension lump sum overpayments: Use your Personal Tax Account or file a Self Assessment return.
  • Redundancy overpayments: Write to HMRC with your P45 and employer letter.
  • Multiple years or complex claims: Write to HMRC with a formal overpayment relief claim.

If you are unsure which route applies, our services page covers the full range of tax compliance work we handle. We can review your situation and tell you the quickest way to get your money back.

How Long Does a Tax Refund Take?

Simple PAYE corrections processed through your Personal Tax Account often take 4 to 6 weeks. Self Assessment refunds are usually issued within 4 weeks of filing your return. Complex claims involving foreign income, multiple years, or overpayment relief can take 3 to 6 months or longer.

If HMRC needs more information, they will write to you. Respond promptly to avoid delays. If you have already claimed a refund, you can check the status using the HMRC tax refund tool [1].

Common Mistakes to Avoid

  • Claiming for expenses that are not allowable. HMRC will reject claims for ordinary commuting costs, clothing that can be worn outside work, and general living expenses. Only claim for costs that are "wholly, exclusively, and necessarily" incurred for your job.
  • Missing the deadline. You can usually claim for up to four previous tax years, but the rules are strict. For professional subscriptions, all submissions must be made by 5 April each year [3].
  • Not keeping evidence. HMRC can ask for receipts, invoices, or bank statements. Keep records for at least 22 months after the end of the tax year, or 5 years if you are self-employed.
  • Claiming through the wrong route. Using the wrong form or tool can delay your refund by months. Check the HMRC guidance first.

When to Get Professional Help

Most straightforward claims can be handled yourself through your Personal Tax Account. But some situations benefit from professional advice:

  • You have foreign income and need to claim double taxation relief.
  • You are claiming overpayment relief for a previous year.
  • You have multiple sources of income and complex tax codes.
  • You are a director of a limited company and need to reconcile your director's loan account.
  • You are claiming R&D tax credits and need to prepare the Additional Information Form (AIF).

Our about page explains how we work with business owners across the UK. If you are unsure about any part of the process, contact us for a no-obligation chat. We can review your situation and tell you exactly what you need to do.

As ICAEW qualified accountants, we deal with HMRC regularly. We know which claims get accepted quickly and which ones trigger enquiries. A small investment in professional advice can save you months of waiting and prevent costly mistakes.

Final Thoughts

Reclaiming tax from HMRC is straightforward if you use the right route and provide the right evidence. Start with the HMRC tax refund tool to check what you need to do. If the tool tells you to use your Personal Tax Account, do that. If it tells you to file a Self Assessment return, do that. If it tells you to write to HMRC, do that.

Do not sit on overpaid tax. HMRC will not automatically refund it in most cases. You have to ask. And if you miss the deadline, you lose the money.

For more detailed guidance on specific topics, see our fundamentals page or browse the glossary for key tax terms.

Sources

  1. gov.uk: Check how to claim a tax refund - GOV.UK
  2. acas.org.uk: Making and checking deductions - Deductions from pay and wages
  3. bda.org: Reclaim my tax - British Dental Association
  4. icaew.com: Check claims for foreign tax credit relief, says HMRC - ICAEW.com
  5. fca.org.uk: Tax-free pension lump sums and cancellation rights - FCA