Who gets a tax refund in the UK
You are due a tax refund if 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 to employees, but also to self-employed people, pensioners, and people with multiple income sources. The tax year in the UK runs from 6 April to 5 April the following year.
The most common reason for overpayment is that your employer deducted too much tax from your wages. This can happen if you changed jobs mid-year, had two jobs at once, or received a bonus that pushed you into a higher tax bracket temporarily. Pensioners sometimes overpay if they have not told HMRC about their full income. Self-employed people may overpay if they have paid too much on account or if their actual profit was lower than estimated.
HMRC does not automatically refund you. You have to tell them that you have overpaid, either by writing to them, using your online tax account, or filing a Self Assessment tax return if you are self-employed or have other untaxed income.
Key Takeaways
- You are due a refund only if you have paid more tax than you owed for the tax year, and HMRC will not refund it without you asking.
- Employees can check their tax code and recent payslips to spot overpayment, or contact HMRC directly using their National Insurance number.
- Self-employed people and those with untaxed income must file a Self Assessment return to claim a refund.
- HMRC typically processes refunds within four to six weeks of receiving your claim, but can take longer if they need to investigate.
- You can track your refund status through your online tax account or by calling the HMRC helpline.
How to check if you have overpaid as an employee
The quickest way to check is to look at your most recent payslip and your tax code. Your tax code appears on your payslip and tells your employer how much tax-free income you are allowed each year. If your code is wrong — for example, if it does not account for a second job or a pension — you will have overpaid.
You can also log into your online tax account using your Government Gateway login. This shows your tax position for the current year and any previous years. If the amount of tax you have paid is higher than the amount you owe, the difference will show as a refund due to you.
If you do not have an online account, you can contact HMRC directly. You will need your National Insurance number. Call the HMRC Income Tax helpline on 0300 200 3300 (Monday to Friday, 8am to 8pm; Saturday, 8am to 4pm). They can tell you whether you have overpaid and how much you are due back.
How to claim a refund as an employee
If you have confirmed that you have overpaid, you can claim your refund online through your tax account. Log in, go to the "Income tax" section, and select "Claim a refund". You will need to explain why you have overpaid — for example, you left a job partway through the year, or your tax code was wrong.
If you do not have an online account or prefer to claim by post, you can write to HMRC. Send a letter to your local tax office (the address is on any tax letter you have received) with your name, address, National Insurance number, and an explanation of why you believe you have overpaid. Keep a copy of your letter and any supporting documents, such as payslips or a P45 from a job you left.
HMRC will review your claim and contact you if they need more information. If your claim is correct, they will process the refund within four to six weeks. Refunds are paid directly into the bank account you provide.
How to claim a refund if you are self-employed
Self-employed people and those with other untaxed income must file a Self Assessment tax return to claim a refund. You can only claim through a return; HMRC will not process a refund claim any other way.
You can file your return online through your Self Assessment account on the HMRC website, or on paper if you have a good reason not to use the online service. The deadline to file for the tax year ending 5 April 2024 is 31 January 2025. If you file late, you may face a penalty.
When you file your return, HMRC will calculate whether you have overpaid. If you have, the refund will be shown on your notice of assessment. HMRC will then pay the refund into your bank account, usually within four to six weeks of processing your return.
How long refunds take and how to track them
HMRC aims to process refunds within four to six weeks of receiving your claim or return. However, this can take longer if they need to ask you for more information, if your claim is complex, or if they decide to investigate your tax position.
You can track the status of your refund through your online tax account. Log in and check the "Income tax" or "Self Assessment" section — it will show whether your claim is being processed, whether HMRC has asked for more information, or whether your refund has been paid.
If you claimed by post and do not have an online account, you can call HMRC on 0300 200 3300 to ask about the status of your claim. Have your National Insurance number and the date you sent your claim ready.
What to do if your refund is delayed or you disagree with HMRC's decision
If more than six weeks have passed and you have not received your refund, contact HMRC to find out why. It may be that they have asked for more information and your letter went astray, or that your claim is being investigated. Call 0300 200 3300 or check your online account for any messages from HMRC.
If HMRC refuses your refund claim or offers you less than you believe you are owed, you have the right to appeal. You must do this within 30 days of receiving their decision. Write to HMRC explaining why you disagree and include any new evidence. If you remain unhappy after HMRC's response, you can ask for your case to be reviewed by an independent tribunal, but you will usually need to pay for professional advice to do this.
If you are unsure whether you have a valid claim or how to appeal, you can contact a tax adviser or Citizens Advice for guidance. Some advisers offer free initial consultations.
Refunds for VAT and other business taxes
If you arrived at this page from the VAT Refunds section, note that claiming a VAT refund works differently from claiming an income tax refund. VAT refunds are claimed through your VAT return if you are registered for VAT, or through a separate claim if you are not registered but have paid VAT on business purchases. The timescale and process depend on whether you are VAT-registered and the reason for the refund.
Income tax refunds (covered in this article) apply to tax you have paid on wages, self-employment income, pensions, or other personal income. They are separate from VAT refunds and are handled by a different part of HMRC.
Frequently Asked Questions
How do I know if I am may have access to to a refund without contacting HMRC?
Check your payslips against your tax code. If your code looks wrong — for example, it does not show a second job or a pension — you have likely overpaid. You can also log into your online tax account and look at your tax position for the year. If the tax paid is higher than the tax owed, a refund is due.
Can I claim a refund for more than one tax year?
Yes. You can claim for any tax year going back up to four years, provided you have evidence of overpayment (such as payslips or a Self Assessment return). However, HMRC may investigate older claims more closely. Contact them to discuss which years you want to claim for.
What if I have moved house or changed my bank details since I overpaid?
Tell HMRC your new address and bank details when you claim your refund. You can update your details through your online tax account or by writing to them. HMRC will send the refund to your current bank account once you have updated your information.
Do I have to pay tax on the refund itself?
No. A tax refund is not taxable income. It is money you have already paid tax on, so HMRC does not tax it again when they return it to you.
What if HMRC says I owe tax instead of owing me a refund?
If HMRC calculates that you underpaid tax, they will tell you how much you owe and when payment is due. You can usually pay online through your tax account, by bank transfer, or by cheque. If you cannot pay in full, contact HMRC to discuss a payment plan.