Tax refunds in London follow UK rules, not US ones
If you live or work in London, you do not receive a tax refund the way someone in the United States does. The UK tax system works differently. Instead of filing a return and waiting for money back, the UK uses Pay As You Earn (PAYE), which takes tax directly from your wages throughout the year. If too much tax was taken, you get a refund — but the process and timeline are not the same as an American tax refund.
London residents who are employed typically have tax deducted automatically. Self-employed people and those with multiple income sources file a Self Assessment tax return. Refunds happen, but they come from HM Revenue & Customs (HMRC), the UK tax authority, not from a state or federal system.
If you are a US citizen or resident alien living in London, you may owe US taxes as well as UK taxes. That is a separate process entirely and involves filing with the Internal Revenue Service (IRS), not HMRC.
Key Takeaways
- UK employees do not file annual tax returns unless they are self-employed or have complex income; tax is taken automatically through PAYE.
- If you overpaid UK tax through PAYE, you can request a refund from HMRC by contacting them directly or through your employer.
- Self-employed people in the UK file a Self Assessment return with HMRC, and refunds are processed after the return is filed and reviewed.
- US citizens in London must file US taxes separately with the IRS, even if they also pay UK tax.
- Refund timelines in the UK vary: PAYE refunds can take 4 to 8 weeks, while Self Assessment refunds may take longer depending on the complexity of your return.
How PAYE refunds work if you overpaid
If you are employed in London and your employer has taken too much tax from your wages, you can request a refund from HMRC. This happens when your tax code is wrong, you worked part of the year, or you have personal allowance left unused. You do not need to file a return — you contact HMRC directly.
To request a PAYE refund, you can call HMRC's Income Tax helpline or use your personal tax account online through the HMRC website. You will need your National Insurance number and details of the overpayment. HMRC will review your records and, if they confirm you overpaid, process a refund. This typically takes 4 to 8 weeks, though it can be faster if the amount is small and the error is clear.
Some employers also handle small refunds directly if you ask them. If your employer corrects your tax code mid-year, they may adjust your pay to refund the overpayment rather than sending you a separate cheque.
Self Assessment refunds for self-employed and multiple-income earners
If you are self-employed in London or have income from multiple sources, you file a Self Assessment tax return with HMRC each year. The deadline is usually 31 January following the tax year that ended on 5 April. When you file, HMRC calculates what you owe or what you should receive back.
If your return shows you overpaid, HMRC will issue a refund. The timeline depends on how you file. If you file online, HMRC typically processes refunds within 4 to 6 weeks. If you file on paper, it can take 8 to 12 weeks or longer. HMRC will send the refund to your bank account if you provided one, or by cheque if you did not.
You can check the status of your Self Assessment refund through your personal tax account online. HMRC will show the amount owed to you and an estimated date when it will arrive.
US tax obligations for Americans in London
If you are a US citizen or resident alien living in London, you must file a US tax return with the IRS each year, regardless of where you live. This is separate from any UK tax you owe to HMRC. The US taxes worldwide income, so even if you only earn money in the UK, you still file with the IRS.
The IRS offers the Foreign Earned Income Exclusion, which allows you to exclude a certain amount of foreign income from US tax (the amount changes each year). You may also be able to claim a Foreign Tax Credit for taxes you paid to the UK. These can reduce or eliminate your US tax bill, and may result in a refund from the IRS.
US tax returns are due 15 April, but Americans abroad get an automatic extension to 15 June. You file with the IRS, not with HMRC. If you are unsure whether you owe US tax or how to handle the Foreign Earned Income Exclusion, you should speak with a tax professional who handles US expat returns.
Tracking a UK tax refund through HMRC
The easiest way to track a UK tax refund is through your personal tax account on the HMRC website. You will need to register with your National Insurance number and create a login. Once logged in, you can see your tax position, any refunds owed to you, and the status of refunds already issued.
If you filed a Self Assessment return, your account will show the amount HMRC calculated you should receive and when it expects to send it. If you requested a PAYE refund, your account will show the status of that request as well.
If you do not have an online account or prefer to speak to someone, you can call HMRC's Income Tax helpline. Wait times vary, but calling early in the week or early in the day is usually faster. Have your National Insurance number ready.
What to do if your refund is delayed or missing
If your refund has not arrived within the expected timeframe, first check your personal tax account to confirm HMRC has processed it. Sometimes a refund is issued but takes longer to reach your bank account — this can happen if your bank is slow to process incoming transfers, or if HMRC sent a cheque instead of a bank transfer.
If HMRC shows the refund was issued more than 8 weeks ago and it has not reached your account, contact HMRC. They can confirm whether the payment was sent and to which account. If the refund was sent to an old bank account you no longer use, HMRC may need to reissue it to your current account.
If you believe HMRC made an error in calculating your refund, you can ask them to review the calculation. This is different from appealing a tax decision — it is simply asking them to check their math. Provide any documents that support your claim, such as payslips or receipts.
Refunds for visitors and temporary workers in London
If you are visiting London or working there temporarily on a visa, you may be may have access to to a refund of tax you paid while you were in the UK. The rules depend on your visa type and how long you worked.
Temporary workers and visitors who leave the UK can sometimes claim back tax paid on employment income. You will need to contact HMRC and provide proof that you have left the UK and are not returning. The process is slower than a standard refund — it can take several months — and HMRC may ask for additional documents to confirm your status.
If you worked in the UK and paid National Insurance contributions, you may also be may have access to to a refund of those contributions if you have left the country and are not returning. This is handled separately from income tax refunds.
Frequently Asked Questions
Do I file a tax return in London like I would in the US?
No. If you are employed in London, your employer takes tax automatically through PAYE and you do not file a return unless you are self-employed or have other income. Self-employed people file a Self Assessment return once a year. The process is different from US tax filing.
How long does a UK tax refund take?
PAYE refunds usually take 4 to 8 weeks. Self Assessment refunds take 4 to 6 weeks if you file online, or 8 to 12 weeks if you file on paper. Refunds for people leaving the UK can take several months.
Can I get a refund if I worked in London for only part of the year?
Yes. If you worked for part of the year, your employer may have taken too much tax because your personal allowance was not spread across the full year. You can request a refund from HMRC, or ask your employer to adjust your tax code for the remainder of the year.
Do I owe US taxes if I work in London?
Yes, if you are a US citizen or resident alien. The US taxes worldwide income. However, you may be able to use the Foreign Earned Income Exclusion or Foreign Tax Credit to reduce or eliminate your US tax bill. Speak with a tax professional who handles expat returns.
What if HMRC sent my refund to an old bank account?
Contact HMRC and tell them the refund reached the wrong account. They can reissue the refund to your current account. Provide your current bank details and they will process a new payment.