Every year, HMRC refunds billions of pounds in overpaid income tax. A lot of that money is claimed through the Personal Tax Account or a P800 letter, but a surprising amount is never claimed at all. If you have changed jobs, worked part-year, or paid tax on something you did not need to, you may already be owed a refund without knowing it.
How HMRC works out refunds
Shortly after the tax year ends on 5 April, HMRC runs an automatic reconciliation for every PAYE taxpayer. If the system finds you paid more than you owed, it will issue a P800 letter explaining the amount and how to claim. If you are due to pay more, the same letter will tell you.
Not everyone gets a P800 though. If you have complex income, are self-employed, or have multiple small jobs, you may need to check the position yourself.
Common reasons you might be owed money
- You left a job part way through the year and did not earn enough to use the full allowance.
- You had an emergency or BR tax code and never received the usual personal allowance.
- You paid higher-rate tax on pension contributions but never claimed the extra relief.
- You wore a uniform for work and never claimed the flat-rate expenses.
- You paid tax on savings interest when you were within the Personal Savings Allowance.
How to claim safely for free
Sign in to the Personal Tax Account on GOV.UK. You can check the last four tax years, see whether any refund is waiting, and claim directly to your bank account. It is free. HMRC will never charge a fee.
For self-employed refunds, you claim through your Self Assessment return. HMRC will pay the refund into the bank account you have on file, usually within two weeks of the return being processed.
How to avoid tax refund scams
If you receive a text or email offering you a refund, it is almost always a scam. HMRC does not send refunds by text or email. Our tax rebate scam guide explains the warning signs in detail.
Third-party "tax reclaim" companies are legal but often take a large cut of any refund — sometimes half. You almost always get the full refund by claiming directly through HMRC instead.
Estimate your refund before claiming
Use our salary calculator to check the tax you should have paid, then compare it with your actual P60 or P45. If the calculator shows lower tax than your payslips, there is a good chance you are due money back.
The bottom line
The refund process is slower than it should be, but it is completely free and safer than any third-party service. If your job, hours, or tax code have changed in the last four years, it is worth the ten minutes to check.