How do I Claim my HMRC Tax Refund? 

Claiming your HMRC tax refund can seem confusing, but armed with the right knowledge, you can successfully recover your overpaid income tax.

How you claim back a tax refund from HMRC depends on a combination of factors including the type of refund being reclaimed.

Your personal circumstances directly affect your tax refund eligibility. Students, pensioners, and part-time workers should pay particular attention to their tax affairs as these groups frequently overpay.

Life changes like switching jobs, paying for work related expenses yourself, or leaving the UK can also trigger refund opportunities.

Many taxpayers leave their money unclaimed simply because they don’t realise they’ve overpaid or find the process intimidating.

Remember that HMRC has strict time limits – you must claim within four years of the tax year end, otherwise, your money remains permanently with the treasury.

Prior to starting your claim, reviewing your personal tax situation thoroughly will help you avoid disappointment and ensure you’re only focusing on legitimate refund opportunities.

This guide cuts through the confusion to show you how to:

1. Claim your tax refund.
2. Check your HMRC tax refund status.
3. Timelines for refunding your money.
4. Documentation needed for HMRC refunds.
5. Common reasons why you may be due a refund of tax.

Taking the time to learn more about HMRC’s tax refund rules coupled with some diligence could result in a welcome financial boost that might otherwise remain unclaimed forever.

Your overpaid income tax sitting in HMRC’s accounts rightfully belongs to you. Take action today – check your tax records, gather your documents, and follow the steps outlined in this guide.

Understanding why you might be owed a tax refund

Before claiming your HMRC tax refund, understanding all of the reasons why you might be owed money back from the government is crucial.

Tax overpayments happen more frequently than some people realise, often without taxpayers even noticing the extra deductions from their income.

Eligibility for an HMRC tax refund primarily depends on whether you’ve genuinely paid more tax than you owe. You may qualify if:

• You’ve stopped working but paid tax through PAYE during the tax year.
• You’ve been assigned an incorrect tax code by HMRC or your employer has used the wrong one.
• You’ve paid too much tax on pension payments.
• You’ve incurred qualifying work expenses that weren’t reimbursed by your employer.
• You’ve made charitable donations through Gift Aid.
• You’ve paid tax on savings interest that should have been tax-free.
• Being a student who works only during holidays.
• Working on a casual basis with irregular hours.
• You’ve recently left the UK and have overpaid tax.

If you have overpaid in one of these situations it’s usually because you’ve not received your full tax-free personal allowance or your tax code hasn’t been correct during some or all of the tax year.

How to check if you’re eligible before claiming

Determining your eligibility for an HMRC tax refund is a key step before beginning the claims process.

Not everyone who thinks they’ve overpaid tax will qualify, yet a number of taxpayers never make claims simply because they’re unaware of their rights.

It’s worth noting that some but not all tax refunds occur automatically through the PAYE system meaning that you don’t need to contact HMRC to receive your overpayment.

Incorrectly allocating personal allowances is the usual reason resulting in excessive deductions that will normally be repaid automatically after the end of the tax year or through your salary.

Students, pensioners, and part-time workers are common groups of taxpayers that fall into this category.

Examples of automatic tax refund situations:

Real-life scenarios when tax overpayments are usually refunded without having to make a claim include:

• Multiple jobs: If you work more than one job simultaneously, the PAYE system might not correctly allocate your personal allowance across all employments.
• Emergency tax codes: When starting a new job without providing a P45, you’ll likely be placed on an emergency tax code, resulting in higher deductions.
• Mid-year job changes: If you stop working partway through the tax year and don’t have another income source, you may not receive your full personal allowance.
• Pensioners: Retirees frequently overpay tax, particularly when the amount of state pension in their tax code is incorrect or when taking pension lump sums.
• Part-time or casual workers: Those with irregular work patterns often overpay because the PAYE system assumes a consistent income throughout the year.

How are automatic refunds paid by HMRC?

In some cases HMRC will send you a P800 tax calculation letter after the tax year ends (April 5) if they find you’ve paid too much tax. The money will either be sent to your bank account or by cheque with details given on the P800.

HMRC’s calculations aren’t always perfect, which is why checking the figures against your own records (for example a P60 or P45) is often worthwhile.

If an overpayment of tax is highlighted during the tax year your employer will reimburse you through your salary.

This can happen in circumstances where they have processed your P45 or starter checklist or been given a new tax code from HMRC.

What income types qualify for tax refunds?

Several income sources might result in a tax refund being due.

While the following list isn’t exhaustive, it does highlight a number of possibilities, some of which might not have initially crossed your mind:

• Employment income – Refunds most commonly arise from PAYE employment.
• Pension income – Both state and private pensions can trigger refunds, particularly when emergency tax codes are applied to lump sum withdrawals.
• Dividend income after you have used the tax free dividend allowance.
• Savings income after you have used the tax free personal savings allowance.
• Rental property income often in cases where rental income has been included in your tax code.
• Savings interest after the personal savings allowance (PSA) has been applied.
• Self-employment income – If you’ve made payments on account that exceed your actual tax liability, you may be due a refund after filing your self assessment.
• Foreign income – If you’ve paid tax both in the UK and abroad on the same income, double taxation agreements might entitle you to a refund.

HMRC tax refund claim process

Claiming your HMRC tax refund requires following specific procedures depending on your circumstances and the type of refund you are trying to reclaim.

Following HMRC guidelines before you make a claim is especially important if you are wanting to reclaim tax relief on work related expenses.

If you don’t provide the necessary evidence and only claim for what HMRC deems as allowable (under their regulations) your claim will be rejected.

The right approach and giving HMRC what they need in your initial claim can significantly reduce waiting times and ensure you receive all of what you’re owed without complications.

Claiming refunds for previous tax years

Be aware that under the pay as you earn system (PAYE) you can claim tax refunds for up to four years after the tax year.

Example tax refund claim deadlines are:

• Tax year 2020/21: claim by April 5, 2025
• Tax year 2021/22: claim by April 5, 2026
• Tax year 2022/23: claim by April 5, 2027
• Tax year 2023/24: claim by April 5, 2028

If you find that you have paid too much tax in more than one of the last four tax years you can incorporate all of the years together in the same claim to allow for one cumulative refund.

Gather the right documents before you start

Collecting the right documentation is the foundation of a successful HMRC tax refund claim.

Ultimately, organising these documents beforehand will make your tax refund claim process smoother.

Without proper evidence, HMRC may reject your application or have to ask you to provide extra information which will delay processing it.

Below, we explore the initial documentation you should compile for several common claims, helping you to sidestep unnecessary delays caused by follow-up requests for further information.

P87 for expenses of employment

For employment expenses what HMRC needs as evidence varies according to claim type.

Generally, you must provide:

• Receipts or evidence showing payments for professional fees or union subscriptions.
• For travel expenses, copies of mileage logs including postcodes for start/end points and pay-slips or a statement from your employer confirming any mileage payments received.
• For accommodation or meals, receipts showing dates and establishment name with address.
• For home working expenses, your contract of employment confirming that working from home is mandatory.

Remember, the burden of proof lies with you as the taxpayer and HMRC expects your record-keeping to meet their requirements under their tax relief for expenses of employment guidance.

Even if you can’t locate all necessary documents, HMRC may allow using ‘provisional’ or ‘estimated’ figures, but this approach normally results in additional queries and initial figures won’t always be acceptable.

P87 claim form can be found here on .GOV.

Tax relief for employees guidance can be found here on .GOV.

P85 leaving the UK

Form P85 is specifically for those leaving the UK who want to claim a tax refund or inform HMRC about residency status changes.

You can submit this before or after leaving the UK – though postal submission is required if you haven’t already left yet. Include parts 2 and 3 of your P45 when sending the form.

For P85 refunds, HMRC doesn’t currently offer an international bank transfer option so maintaining a UK bank account temporarily is advisable.

P85 claim form can be found here on .GOV.

P50 when you stop working

Use form P50 if you’ve stopped working in the current tax year and don’t expect to work or receive taxable benefits for at least four weeks.

This form is appropriate if you’ve retired, become unemployed, or returned to full-time education.

P50 claim form can be found here on .GOV.

Other tax and financial documents to keep

It’s best practice to keep most other tax forms and financial documents just in case you need them to complete a tax refund claim.

They can also come in handy if you need to apply for a personal loan or need to prove your identity.

Your P60 is a crucial document that shows the tax you’ve paid on your salary within the tax year (April 6 to April 5). Your employer must provide this by May 31 each year if you were employed on April 5.

Keep this document safe as it proves how much tax you’ve paid on your salary and is essential when claiming overpaid tax.

When leaving a job, you’ll receive a P45 form, which records your pay and tax deducted in the current tax year

This form has four parts – your employer sends Part 1 to HMRC and gives you the other three parts. You should keep Part 1A for your records.

If you’ve misplaced these documents or want quick online access:

• For a lost P60, contact your employer for a duplicate copy clearly marked as ‘duplicate’.
• For a missing P45, ask your employer for a ‘statement of earnings’ on company letterhead.
• Alternatively, you should be able to access the same information (in a different format) online via your HMRC app or personal tax account.

Bank statements

Bank statements provide evidence of income received from various sources and can show what has been spent on expenses relating to income from both PAYE and self employment.

These statements are particularly important when claiming refunds related to interest income from a bank or building society account.

HMRC can occasionally request bank statements as supporting evidence so having these documents ready can expedite the refund process.

Dividend certificates

If you have received dividends, you will receive a consolidated tax certificate (CTC) which provides an overview of dividend earnings from your investment holdings during a tax year.

A dividend tax certificate serves as proof of dividend distribution for shareholders and should be kept as verification for HMRC regarding dividend income for tax refund purposes.

Keeping your dividend certificates is also necessary for shareholders who submit a self-assessment tax return, as dividend earnings must be reported on your return.

Claiming through your personal tax account or HMRC app

The most efficient way to claim your tax refund is through your personal tax account (PTA) which gives you access to the forms you need to start your claim.

After signing in on the GOV.UK website, you can check your tax details, submit claims, and track refund status.

Through your PTA, you can view income from work for the previous five years and check how much Income Tax you paid during this period.

The HMRC app offers similar functionality with added convenience. After downloading it from Google Play or the App Store, you can sign in using your Government Gateway ID and password.

Subsequently, you can use a 6-digit PIN, facial recognition, or fingerprint for quicker access.

The app allows you to claim refunds directly, with payments processed via BACS to your bank account – typically faster than a cheque through the post.

Know what happens after you submit your claim

Once your tax refund claim is submitted to HMRC, patience becomes your best ally.

The waiting period gives HMRC time to process your claim and verify its legitimacy.

How long it takes to get your refund:

After submitting your claim, the timeline for receiving your refund varies considerably based on several factors.

Overall, HMRC tax refunds typically take between 5 days and 8 weeks to process, depending on your specific circumstances.

This timeframe is influenced by:

• Method of submission: Online claims are processed faster than paper submissions.
• Time of year: Processing slows around peak periods, particularly the January tax return deadline rush.
• Complexity of your case: Straightforward claims are resolved quicker.

Keeping track of your tax refund claim status:

HMRC provides several tools to monitor your refund progress:

• The “Where’s My Reply” tool on GOV.UK allows you to check expected response times for your query
• Your personal tax account will show your refund status, occasionally marked as “pending” while awaiting approval
• HMRC’s app offers real-time updates on your claim status

Should your refund take longer than expected, contacting HMRC directly remains your best option for clarification.

It is important to acknowledge that HMRC is a sizable organisation that faces challenges with limited staffing and budget constraints. With this in mind offering their employees a degree of flexibility would be both sensible and valued.

For successful online claims through your personal tax account, you should receive your refund within five working days from when HMRC gives you notification.

Those who receive a P800 calculation stating a cheque will be sent automatically should receive it within 14 days of the date on the calculation.

Security checks:

HMRC routinely performs security assessments on all refund requests to prevent fraud.

These checks can occasionally delay your refund, but they’re crucial for maintaining system integrity.

If HMRC’s risk assessment flags potential concerns with your claim, they’ll contact you by letter to verify your identity.

This doesn’t mean you’ve done anything wrong – their systems sometimes flag legitimate claims.

Claiming after receiving a P800 refund letter

If HMRC determines you’ve overpaid tax, they’ll usually send a P800 tax calculation letter in the post and update the same information in your online tax account.

When this happens, carefully check the letter’s wording and if it states you can claim online, you have three options:

1. Use the online bank transfer service (requires your national insurance number and P800 reference number).
2. Claim through your personal tax account.
3. Request a refund via the HMRC app.

Using the online option to claim a refund is typically processed within five working days, whereas cheque requests take approximately six weeks.

If your P800 states that HMRC will send a cheque automatically, you should expect to receive it within 14 days of the letter date and no further action is necessary.