Think you’ve overpaid tax? Then, you are likely legible for a tax refund.
Overpaid tax can arise under different circumstances.
- The wrong tax code was used because HMRC used the wrong one or
your employer used an incorrect code.
- You were taxed under an emergency code when you started your
- Your circumstances have changed, but you did not claim to
reduce your tax payments.
- Your tax-free allowance has not been allocated properly.
- You overpaid tax on savings interest.
- You overpaid income tax, which is refundable following your
death, and will be counted as part of your estate.
- You overpaid tax on pensions or when you cashed in on small
By checking on where you’ve overpaid tax, you are likely to make money or save on tax payments. But you must file a claim within the time limit, which is up to four years from the end of the tax when you overpaid tax. It is best that you claim a tax refund the following year you’ve overpaid tax, so you don’t lose the right to for a refund. In the event that HMRC repays you after 31 January after the end of the tax year that you overpaid tax, they will have to pay interest.
Rules on tax refund claim
Making a claim is not as simple as straightforward, which is why you should seek professional advice as much as possible. If you are on strike and want to claim overpaid PAYE tax, for example, you will receive your refund after you go back to work or leave your job. Not at the end of financial year.
Think you may be due a tax refund? Apply here to get your tax back.