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HMRC Tax Overpayment Refunds

Paid too much tax? HMRC may owe you money.

#At a Glance
Difficulty ⭐ Easy
Time to DIY 30 minutes–2 hours
Average Refund £300–£1,000+
Time Limit 4 years
Escalation HMRC / Tax tribunal

#What Is It?

You may have overpaid income tax if:

  • Your tax code was wrong
  • You left a job mid-year and didn't work again
  • You had multiple jobs and tax wasn't coordinated
  • You paid emergency tax on a new job or pension
  • You didn't claim allowable expenses for work
  • You're entitled to tax relief you didn't claim

#Common Reasons for Overpayment

#1. Wrong Tax Code

Your employer uses a tax code from HMRC. If it's wrong, you pay too much or too little. Common errors:

  • Incorrect Personal Allowance
  • Benefits listed that you don't receive
  • Old job's code applied to new job

#2. Emergency Tax

Starting a new job without a P45 often triggers emergency tax – you may be owed a refund.

#3. Leaving Work Mid-Year

If you stop working partway through the tax year, you may have paid tax as if you'd earn that rate all year. Refund may be due.

#4. Multiple Jobs

Tax codes across multiple jobs don't always calculate correctly. One job may have taken too much.

#5. Uniform/Work Expenses

Many employees can claim flat-rate expenses for washing uniforms or using tools. Up to £60/year for some industries.

#6. Working from Home (COVID and After)

If you worked from home, you may be owed £6/week tax relief – up to £312/year.

#Am I Owed a Refund?

#✅ Check if you:

  • Started a new job in the last 4 years
  • Left a job and didn't work for the rest of that tax year
  • Were made redundant
  • Received a pension lump sum
  • Had multiple jobs
  • Paid UK tax while working abroad
  • Never claimed work expenses

#❌ Less likely if:

  • You complete Self-Assessment (reconciled annually)
  • You've received P800 showing no refund due
  • You've already claimed for the years in question

#Step-by-Step Process

#For PAYE Employees

Step 1: Check Your Tax Code

  • Look at your payslip – tax code is usually 1257L
  • Log in to HMRC online (Personal Tax Account)
  • Check the code matches your circumstances

Step 2: Check for P800

  • HMRC sends P800 letters if you've over/underpaid
  • Also visible in your Personal Tax Account
  • If you're owed money, you can claim online

Step 3: Claim a Refund

  • If HMRC hasn't sent a P800 but you think you've overpaid:
  • Use form P50 (if you've stopped working)
  • Use form P55 (if you've flexibly accessed your pension)
  • Or call HMRC: 0300 200 3300

Step 4: Claim Work Expenses

#Uniform & Work Expense Allowances

Many employees can claim flat-rate tax relief for work expenses:

Industry/Job Annual Allowance
Healthcare (nurses, ambulance) £185
Engineering £140
Heating/ventilating £140
Agriculture £100
Building £140
General uniform washing £60

How to claim:

#Working from Home Tax Relief

If you worked from home (including during COVID):

Period Weekly Allowance Annual Value
2020/21 £6/week £312 (full year)
2021/22 £6/week £312
2022/23 onwards £6/week Only for weeks worked from home

Tax relief: 20% of allowance = £1.20/week = up to £62/year

How to claim: gov.uk/tax-relief-for-employees/working-at-home

#How HMRC Pays Refunds

  • P800 online: Claim within 45 days via Personal Tax Account
  • Cheque: HMRC posts a cheque if you don't claim online
  • BACS: Can request bank transfer
  • Tax code adjustment: Future tax reduced to balance it out

#Common Questions

Q: How far back can I claim?

4 tax years. As of 2025/26, you can claim back to 2021/22.

Q: HMRC says I owe them money – can that be wrong?

Yes. Request a breakdown and check it carefully. Mistakes happen both ways.

Q: I've moved address – will they find me?

Update your address with HMRC. Old refund cheques may have gone to previous addresses.

Q: Should I use a tax refund company?

No. They charge 25–40% of your refund for a simple process. Do it yourself in 30 minutes.