If you pay tax through the PAYE system, it is your employer’s responsibility to send HMRC information about your income, the amo-unt of taxes paid, and any benefits you receive in kind within the tax year. Once automatic reconciliation is done at the end of each tax year, you will know, one way or another, if you overpaid or underpaid tax.
If HMRC thinks you overpaid tax, you will receive your rebate automatically. Otherwise, you will receive P800 tax calculation, which contains information about tax the taxman thinks you should have paid.
Still think you paid more tax than HMRC’s calculation for whatever reason you could use the assistance of a tax agent. You can apply for tax back here.
Table of Contents
To Claim Back Tax for The Current Tax Year
Call HMRC through the helpline for individuals and employees.
Make sure to prepare beforehand the following information:
- Personal details Full name
- Date of birth
- National Insurance (NI) number
- Each of your employer’s PAYE scheme reference number
- Estimated amount of your earnings for the tax year, separated
by each source
If more information is required to support your claim, HMRC will let you know what documents you must provide.
After placing a phone call, make sure you take note of the date and time, the name of the adviser you spoke to, and the conversation that took place between you and the HMRC adviser. If there is a need to issue you a new tax code, any refund you are supposed to receive will be added to your wages and paid automatically through PAYE. An alternative is when your tax deduction will be reduced.
In the event that you or you receive your final pay for the tax year, you can claim your refund directly from HMRC.
To Claim a Refund Part Way Through the Tax Year…
Use a form P50 to claim an in-year tax repayment if you stop working part way through the tax year and will not have a continuing taxable income or can’t claim a state benefit. Complete form P50 online through Verify on GOV.UK.
In the event that there are discrepancies between your form P50 and HMRC’s payroll records, you may need to send parts 2 and 3 of your P45, which is given to you by your employer when your employment ends. The same thing is true if you’d rather skip using the form P50.
If you are due a tax refund, a cheque will be sent to you by post.
However, if you intend to claim or are already receiving Jobseeker’s Allowance, you won’t be able to get a tax refund right away. The claim process would be different as well, requiring you to send parts 2 and 3 of your form P45 to Jobcentre Plus.
To claim a refund at the end of the tax year, for previous tax years!
Process your claim by sending a letter to HMRC. Specify that you are writing for a “repayment claim”, and place it on top of your letter.
Generally, your letter should contain the following information:
- Full personal details, including NI number
- Employment history
- How much you earned
- How much tax was deducted
Make sure to specify why you think you are due a repayment, sign and date in ink, and then enclose copies of your P45 or P60. If you’re claiming for more than one employer, you may need to send several copies all the said forms.
When writing to HMRC, use your current employer’s tax office address, or the postal address that HMRC used on your most recent correspondence with them. Otherwise, use the address indicated on the agency’s website. See below.
Pay As You Earn and Self Assessment
HM Revenue and Customs
There’s no need to include street and city names or PO Box when using the address above. Use a different address when filing complaints.
How Long Before You Receive Your Tax Return
PAYE repayments are usually processed within eleven weeks after HMRC has received your letter. Unless HMRC needs to carry out security checks, you should be able to receive tax rebate within or after the 11-week period.
How Overpaid Tax is Paid Back to You
If you’re claiming for the current tax year, you should receive a rebate through the PAYE system, either through your payroll or a lower tax deduction.
If you’re claiming part way or at the end of the tax year, it is highly recommended that you request for a direct bank transfer of your tax repayment. Make sure to include important bank details – account name and number, and sort code in your letter. This is also the best way to speed up the repayment process, and ensure that the money goes directly to you.
HMRC repays refunds electronically, using the details of the debit or credit card that you used to make your previous tax payment. If there are changes to your circumstances, or someone else’s credit card was used to pay your tax, you should contact HMRC right away to modify payment arrangement. Failure to do so could mean the owner of the credit card used will get your refund.
Time Limits for Claiming Overpaid Tax
To ensure that you get the tax rebate due to you, you must claim on time. It is crucial that you take note of the time limits that you are allowed to claim back overpaid tax, or lose any refund.
You can always take advantage of the Extra-statutory Concession B41 rule, which will allow you to claim back tax for those tax years that have been closed to reclaim, but there are no guarantees that you will be eligible for it. HMRC rarely grants concessions for claiming back for ‘closed’ tax years as well. So the best recourse would be to claim within the time limits.
- Claim by 5 April 2017 overpaid tax for tax year 2012/13
- Claim by 5 April 2018 overpaid tax for tax year 2013/14
- Claim by 5 April 2019 overpaid tax for tax year 2014/15
- Claim by 5 April 2020 overpaid tax for tax year