If you have paid more tax than you owe, you are entitled to claim it back. HMRC calls this a tax refund, repayment, or rebate [1]. The process is straightforward for most people, but the route you take depends on how you paid the tax in the first place.
This guide covers the main ways to hmrc claim tax refund scenarios: overpaid tax through your job, a Self Assessment return, or other income sources. We also flag the common mistakes and scams to watch for.
When Can You Claim a Tax Refund?
You may be able to get a tax refund if you have paid too much tax [2]. The most common reasons include:
- You left a job part way through the tax year and your tax code was wrong.
- You worked multiple jobs and your personal allowance was split incorrectly.
- You had job expenses your employer did not reimburse (working from home, tools, fuel, work clothing).
- You paid tax on savings interest or PPI payouts when you were within your personal savings allowance.
- You overpaid tax on a pension or annuity.
- You submitted a Self Assessment return and your estimated payments on account were too high.
- You are a non-UK resident who paid UK tax on UK income.
HMRC provides an online tool to check what you need to do if you paid too much tax on pay from a job, job expenses, a pension, a Self Assessment return, a redundancy payment, UK income if you live abroad, interest from savings or PPI, income from a life or pension annuity, foreign income, or UK income earned before leaving the UK [2]. You cannot claim a refund using this tool, but it tells you the correct route to follow [2].
Claiming a Refund Through Your Tax Code
If you are employed and overpaid tax in a previous tax year, HMRC will often adjust your current year tax code to give the money back. This is the most common method. You do not need to do anything if the overpayment is small and your employer uses RTI (Real Time Information) payroll reporting.
If you think the adjustment is wrong, or you want the refund as a lump sum instead, you can contact HMRC directly or use your Personal Tax Account on gov.uk.
For larger overpayments, or if you have left employment, you will need to claim formally. HMRC may ask you to complete a form or submit a Self Assessment return.
Claiming a Refund Through Self Assessment
If you are self-employed, a partner, or a director with complex income, you will claim your refund through your Self Assessment tax return. When you file your return, HMRC calculates the tax due. If you have overpaid, the system shows a repayment figure.
You can choose to have the refund paid directly into your bank account. HMRC typically processes these within 5 to 10 working days after you file, provided the return is straightforward and you have no other tax debts.
There is an important catch. If you have tax due in the next 45 days (for example a payment on account), HMRC will deduct the refund from that amount instead of paying it out [1]. So if you are due a £2,000 refund but have a £1,500 payment on account due in 30 days, you will receive only £500.
The status of your refund may show as "pending" in your online tax account. That means the refund has been created but still needs to be approved and paid [1].
Claiming for Job Expenses
If you buy things for your job that your employer does not reimburse, you can claim tax relief on the cost. Common examples include:
- Working from home costs (if you are required to work from home, not just choosing to).
- Fuel for business travel (if your employer does not cover it).
- Work clothing or tools (if they are essential for your job and not everyday wear).
- Professional subscriptions and union fees.
You claim this relief through your Personal Tax Account or by completing a P87 form if the total is under £2,500. For amounts above £2,500, you must file a Self Assessment return.
The relief is not a refund of the full cost. It is a refund of the tax you paid on that amount. So if you spent £500 on tools and you are a basic rate taxpayer (20%), you get £100 back. Higher rate taxpayers get £200 back.
What About Deductions from Your Pay?
By law, under the Employment Rights Act 1996, an employer can only make a deduction from your wages if it is required by law, for example tax [3]. If your employer has deducted too much tax, they must correct it through payroll. If they have deducted too little, HMRC will collect the shortfall from you.
Employers must deduct tax and National Insurance from employees' and workers' pay and pass it to HMRC [3]. If you think your employer has made an error, speak to them first. If they do not correct it, contact HMRC.
Salary sacrifice arrangements are common for pensions, cycle to work schemes, and childcare vouchers. But a salary sacrifice must not take your pay below the National Minimum Wage [3]. Deductions for tax and NI are exempt from this rule [3].
For till shortages or stock shortfalls, an employer can take a maximum of 10% of your gross pay per pay period, if the contract allows it. They must reclaim the money within 12 months of finding the shortage [3].
How Long Does a Refund Take?
HMRC aims to process straightforward refunds within 5 to 10 working days for Self Assessment and within 30 days for employment-related claims. If you have already claimed a refund, you can check when to expect a reply on the gov.uk service [2].
If your refund is delayed, check your online tax account for any "pending" status. If it has been more than 30 days, contact HMRC. Be prepared to wait longer if your return is complex or if HMRC needs to verify information.
Common Pitfalls and Scams
Tax refunds are a target for scammers. You may receive emails, texts, or phone calls claiming to be from HMRC offering a refund. HMRC will never contact you by email or text to tell you about a refund. They will never ask for your bank details by email. If you receive such a message, do not click any links. Report it to HMRC.
Another pitfall is using unregulated tax repayment agents. Some companies promise to get you a refund for a fee. They often charge high percentages of the refund. You can do the same work yourself for free through your Personal Tax Account. If you do use an agent, check they are regulated by a recognised body such as the ICAEW, ACCA, or ATT.
Be wary of tax avoidance schemes. HMRC does not approve tax avoidance schemes for use [4]. Promoters market them as clever ways to pay less tax, but they rarely work as claimed. Users can end up with large tax bills, sometimes paying far more than the tax they tried to avoid, including interest and penalties [4].
Around 40% of dental professionals surveyed in 2020 were self-employed or working as a freelancer or locum [4]. That is roughly 46,000 dental professionals [4]. Many of them have been targeted by tax avoidance schemes. The General Dental Council warns members to be cautious [4].
If you are approached by a company promising a guaranteed tax refund, ask yourself: is this too good to be true? It probably is.
What If You Have Tax Due at the Same Time?
As mentioned, if you have tax due in the next 45 days, HMRC will offset the refund against that debt [1]. This applies to payments on account, balancing payments, and other tax debts. You cannot choose to receive the refund separately if a debt is due.
If you have multiple tax debts, HMRC will apply the refund to the oldest debt first. This is standard practice and applies to all taxpayers.
Claiming for Previous Years
You can claim a tax refund for up to 4 years after the end of the tax year in which the overpayment occurred. For example, for the 2020/21 tax year, you had until 5 April 2025 to claim. For 2021/22, the deadline is 5 April 2026.
If you are claiming for multiple years, you must submit a separate claim for each year. HMRC will not combine them automatically.
When to Speak to an Accountant
Most tax refund claims are straightforward. But if your situation is complex, or if you are unsure about your eligibility, speak to a qualified accountant. As ICAEW qualified accountants, we deal with these scenarios regularly. We can check your tax position, identify overpayments you may have missed, and handle the claim on your behalf.
If you are a limited company director, your tax affairs are more involved. You may have overpaid corporation tax or VAT, not just income tax. Our services page covers the full range of tax support we offer.
For a deeper look at the fundamentals of UK tax, visit our fundamentals section. And if you need to check your tax code or refund status, use the calculators and tools we have put together.
Final Thoughts
Claiming a tax refund from HMRC is a right, not a favour. If you have overpaid, you are entitled to the money back. The process is free if you do it yourself through your Personal Tax Account or Self Assessment return.
Watch out for scams. Watch out for unregulated agents. And if you are unsure, get professional advice. A small fee for an accountant can save you a much larger loss from a mistake or a bad scheme.
If your turnover crossed the VAT threshold in the last 30 days, or if you have just received a P800 from HMRC showing an overpayment, act within the 30-day window to avoid complications.