How to Get a Tax Refund: Your Guide to UK Tax Refunds

Learning how to get a tax refund can help you reclaim hundreds or even thousands of pounds from HMRC.

A tax refund, also known as a tax rebate, occurs when you’ve paid more income tax than you actually owe.

This commonly happens through the PAYE (Pay As You Earn) system when your employer deducts tax from your salary.

Many UK taxpayers are eligible to get a tax refund but don’t realise it. HMRC puts a four year limit on claiming back a refund after the end of the relevant tax year.

Knowing the different types of tax refund that may be available to you and the timescales involved is vital so you don’t overpay.

HMRC has unique tax refund claim processes in place depending on the type of refund you are entitled to.

What is a tax refund?

Understanding what is a tax refund uk is the first step to claiming money you’re owed.

The UK tax system operates on the principle that you should only pay the correct amount of tax based on your actual income and circumstances.

When the system collects more than necessary, you’re entitled to get that money back.

Tax refunds can arise from various situations including emergency tax codes, leaving employment mid-year, claiming allowable expenses, or changes in your personal circumstances.

The process to get a tax refund has been simplified by HMRC with online claiming options, making it easier than ever to reclaim your money.

Estimates of how much tax goes unclaimed each year runs into the millions of pounds, often because people aren’t aware of their entitlements or don’t understand the claiming process.

Do I get my tax back? Understanding your eligibility

The question “do I get my tax back” depends on your specific employment and tax situation.

You may be eligible for a tax refund if you’ve experienced any of the following circumstances during the tax year.

Common scenarios for tax refunds:

• You’re likely entitled to an employee tax refund if you’ve been placed on an emergency tax code.

This typically happens when you start a new job and your employer doesn’t have your P45 from your previous employer. Emergency tax codes often result in higher tax deductions than necessary.

• Leaving employment partway through the tax year frequently results in overpaid tax. When you stop working, you may not use your full personal allowance for that tax year, creating an overpayment that HMRC should refund.
• Having multiple jobs simultaneously can trigger overpayments. Each employer applies your tax code independently, which can result in paying more tax than your actual liability requires.

Our What is a tax code? guide gives you more details on there impact and what to do to change yours.

Work-related expenses:

Learning how to get PAYE tax back often involves claiming relief on work expenses.

You can claim tax relief on costs that are necessary for your job, including uniforms, professional fees, travel expenses, and equipment purchases.

Our tax relief for expenses of employment guide highlights the options available to PAYE employees and the ways to make a claim.

Actionable Tip:

HMRC doesn’t require a mountain of paper, but they do need clear evidence. Use a simple spreadsheet to log dates, mileage, and the purpose of your travel.

For purchases, take photos of receipts and save them in a dedicated folder on your computer or cloud storage.

This organised approach shows your claim is legitimate and significantly reduces the chance of queries from HMRC.

Pension and benefits:

Pension payments sometimes have incorrect tax deductions, particularly if you receive a lump sum or have multiple pension sources.

Similarly, certain benefits and compensation payments may have had tax deducted when they shouldn’t have been.

Personal circumstances:

Changes in your personal situation, such as marriage, divorce, or having children, can affect your tax liability.

If these changes weren’t reflected in your tax code during the year, you might have overpaid.

Step-by-Step guide to claiming your tax refund

Getting your tax refund usually involves a straightforward process, but knowing the correct steps ensures you claim everything you’re entitled to receive.

Step 1: Gather your documentation

Before you begin your claim, collect all relevant paperwork.

This might include your P60 from your employer showing total earnings and tax paid for the year. If you left a job, ensure you have your P45.

Keep all payslips, especially if they show varying tax codes or deductions.

For expense claims, gather receipts and evidence of work-related purchases.

Professional membership fees, union subscriptions, and necessary equipment purchases all qualify for tax relief.

Step 2: Choose your claiming method

HMRC offers several ways to claim your refund. Online claiming through your government gateway personal tax account provides the fastest processing times.

You can access this service 24/7 and track your claim’s progress.

Alternatively, you can complete and post form P87 for employment expenses or contact HMRC directly by phone.

Phone claims can work well for straightforward situations, while postal claims suit those who prefer traditional methods.

Step 3: Submit your tax refund claim

When claiming online, log into your HMRC account and select the appropriate refund option.

The system guides you through each step, asking for specific information about your circumstances and expenses.

For postal claims, complete the relevant forms accurately and include supporting documentation.

Send everything to the address specified on the form, keeping copies for your records.

Step 4: Provide additional information

HMRC may request additional evidence to support your claim. Respond promptly to any requests, as delays can extend processing times significantly.

Common requests include employment contracts, expense receipts, or clarification about specific claims.

Step 5: Receive your refund

Once approved, HMRC will send your refund directly to your bank account or by cheque.

Online claims typically process faster than postal submissions, with most refunds arriving within 2-3 weeks of HMRC approval.

When do I get a tax refund? Processing times explained

Knowing when do I get a tax refund helps you plan your finances better and understand what to expect from the claiming process.

Online claims processing:

Digital submissions through your HMRC online account typically process within around eight weeks.

This method offers the fastest turnaround because the system can automatically verify much of your information against HMRC’s records.

Postal claims timeline:

Paper-based claims using forms like P87 generally take 8-10 weeks to process.

The extended timeframe accounts for postal delivery, manual processing, and potential requests for additional information.

Automatic HMRC tax refunds:

HMRC sometimes issues automatic refunds after the tax year ends on April 5th.

These typically arrive within a few months of the year-end, accompanied by a P800 tax calculation showing how they determined your refund amount.

Peak tax period delays:

Processing times extend during busy periods, particularly after the tax year ends and during the self assessment deadline season.

Submit claims early in the tax year when possible to avoid these delays.

Factors affecting processing speed:

Complex claims involving multiple employers, extensive expenses, or unusual circumstances take longer to process.

Simple overpayment situations resolve more quickly than claims requiring detailed verification.

Tracking your refund claim:

Online claimants can track progress through their personal tax account or the official HMRC app.

For postal claims, you can call HMRC’s helpline for updates, though they typically can’t provide detailed status information until several weeks after submission.

HMRC offers a check when you can expect a reply tool which can give you some general timescales.

How much tax refund will I get?

Your refund amount depends on how much you’ve overpaid and your tax rate. Basic rate taxpayers get 20% relief on qualifying expenses, while higher rate taxpayers get 40% or 45%.

For example, if you’re a basic rate taxpayer who spent £500 on qualifying work expenses, you’d get a £100 refund.

The tax refund calculator UK can help you estimate an overpayment of tax in basic circumstances.

Scottish taxpayers usually pay income tax at different rates set by the Scottish government.

Avoiding tax refund scams

Protecting yourself from fraudulent tax refund schemes is essential, as scammers increasingly target taxpayers with sophisticated fake communications.

Recognising legitimate HMRC communications:

HMRC never initiates contact about refunds via email or text message.

Genuine refund notifications arrive by post, typically as a P800 tax calculation or official letter on HMRC letterhead.

All legitimate HMRC correspondence includes your full name, address, and National Insurance number. Generic greetings like “Dear Customer” indicate potential fraud.

Common tax scam tactics:

Fraudsters often create urgent scenarios, claiming you must act immediately to claim your refund.

Legitimate HMRC processes never require immediate action or threaten to cancel refunds for delays.

Scam emails frequently contain spelling errors, grammatical mistakes, or unofficial email addresses.

HMRC’s official communications maintain professional standards and come from verified government domains.

Protecting Your Information:

Never provide personal details, banking information, or passwords in response to unsolicited communications. HMRC already has your information and won’t request it via email or text.

Legitimate refund claims only require information you provide directly through official HMRC channels.

Be suspicious of any request for additional personal details beyond what’s necessary for your specific claim.

Reporting suspected fraud:

Forward suspicious emails to [email protected] and text messages to 60599. Report phone scams to Action Fraud at actionfraud.police.uk or by calling 0300 123 2040.

If you’ve accidentally provided information to scammers, contact your bank immediately and consider reporting the incident to the police.

What is a Tax Refund Frequently Asked Questions

How do I get my HMRC tax refund?

To get your HMRC tax refund, you can claim online through your Government Gateway account, complete form P87 by post, or call HMRC directly.

Depending on why you are owed tax refund you’ll need your national insurance number, employment details, and information about why you believe you’ve overpaid tax.

Does HMRC automatically refund overpaid tax?

Yes, HMRC does automatically refund overpaid tax in many cases. After each tax year ends on April 5th, HMRC reviews your tax position and issues automatic refunds where they identify overpayments.

You may need to claim manually for work expenses, multiple employments, or complex situations.

How long does a tax refund take to arrive?

Tax refund processing times vary by claiming method. Online claims typically take up to around 8 weeks, while postal claims can take 8-10 weeks.

Automatic refunds usually arrive within 6-8 weeks after the tax year ends. Complex claims or those requiring additional verification may take longer.

Can I claim a tax refund for previous years?

Yes, you can claim tax refunds for up to four previous tax years. For example, in 2024, you can claim back to the 2020-21 tax year.

You must have valid reasons for the refund and could need supporting documentation for your claim.

What expenses can I claim tax relief on?

You can claim tax relief on expenses that are necessary for your job and not reimbursed by your employer.

This includes professional fees, union subscriptions, work uniforms, travel costs between different workplaces, and equipment essential for your role. The expense must be wholly and exclusively for work purposes.

What happens if HMRC owes me money?

If HMRC owes you money, they’ll either send an automatic refund or require you to claim manually.

Automatic refunds arrive by bank transfer or cheque, while manual claims require you to submit evidence of your overpayment. HMRC pays interest on delayed refunds in some circumstances.

Can I get a tax refund if I’m unemployed?

Yes, you may be entitled to a tax refund if you became unemployed during the tax year.

When you stop working, you might not use your full personal allowance, creating an overpayment. Contact HMRC or claim online to check your position.