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How to claim a tax refund in the UK?

You have overpaid the tax due and want to reclaim the overpaid amount? Well, stop worrying as our experts have got you covered in this updated article. So, stay with us!

Whether you submit self-assessment returns or not, either way you can claim a tax refund in case of overpayment. If you have paid an additional amount than what was actually due in terms of tax, and you prepare and submit a self-assessment tax return, HM Revenue & Customs will return the overpaid amount after processing your tax return. 

Also, if you don’t prepare and submit self-assessment tax returns, you can still ask HMRC for a refund provided that you have overpaid the tax. 

Claiming tax refunds on employment income

If you are employed somewhere and receive salary/wage and pay your tax as per PAYE (Pay-As-You-Earn) system, there is the probability that you might have overpaid the tax, owing to various reasons including not using the universally available Personal Allowance or other reliefs available. 

When you overpay tax, officials at the HMRC themselves try to make the figures correct by refunding the additional amount at the end of the year. 

*NoteThe majority of the people say that HMRC often get refund figures wrong. Therefore, it is strongly recommended that you recheck the figures carefully

When you overpay tax and notify HMRC about it, the officials will either issue you a cheque in GBP or a P800 calculation. 

They may issue what is known as a P800 calculation and/or a cheque in GBP – this will be to the last UK address that they have on record for you. You can also receive your refund directly into your bank account.

For refund purposes, we strongly recommend you to keep HMRC updated with your contact details. You can inform HM Revenue & Customs of change in contact/correspondence details in several ways

How to claim overpaid tax if I stop work part-way through the year?

If you have not worked throughout the year (and stopped receiving taxable benefits), it is legally possible to ask HMRC for an income tax refund prior to the end of the tax year that it applies to. 

How to claim tax relief on expenditures incurred during work?

When it comes to employment expenditures, there are several tax reliefs available that can slash your tax liability. However, you have to remember that you can only claim tax relief on expenditures that have incurred necessarily, solely, and exclusively while performing official tasks. 

Also, when claiming a tax refund on such expenditures, you have to ensure that you have all the relevant records and receipts. 

For more information on employment expenses and tax relief, click here

Also, if you have been reimbursed by your employee, then you are not eligible to claim tax relief. 

For claiming tax relief on employment expenses, you will fill Form P87. It is available on the website along with a complete guide. 

I have left the UK. How can I claim a tax refund?

Fortunately, if you have left the United Kingdom, you can still claim the tax refund. 

For doing so, you are required to fill form P85 [bearing the title Leaving the UK — getting your tax right]  and forward it to HMRC to get a tax refund.

You can also claim a tax refund via online means. For claiming a tax refund online, you are required to send Part 2 and Part 3 of Form P45 along with the form P85. Also, we strongly recommend that you keep copies of each form with yourself while sending the original to the HMRC via registered post. If HMRC finds out that you are actually due a tax refund, they will send the amount either by bank transfer or by post. 

In case you have complicated tax affairs, for instance, you will leave the United Kingdom but continue to receive income from businesses in the UK, then you will complete a self-assessment tax return for the year it applies to (your departure year) instead of completing the form P85. However, if you are still not sure of what to do in case you have left the UK, contact our certified and chartered tax advisors for top-notch advice on your tax matters. Just drop your details and you will get a 15-Minute Free call from one of our experts. 

I receive a pension. How can I claim a tax refund?

There is a possibility that you might have paid more tax than what was actually due on your pension income. It often happens if you pay tax on your pension income via PAYE (Pay As You Earn). But the good news is that you can claim a tax refund in such a case. For more information on this topic, you can visit the Tax Basics Section of 

How to claim tax refunds in uk on savings income? 

From April 6 2016 and onwards, building societies and banks have been bound to pay gross interest. It means that they no longer can deduct income tax from the savings income before giving it to you. 

However, there are some types of savings and interest incomes from which tax is deducted at a rate of 20%. 

Before April-6 2016, banks and building societies automatically deduct the tax at the rate of 20%

If you think that your tax at source deduction has turned out to be more than what was actually due, you can claim it back. 

Is there any time limit for claiming overpaid tax or tax refunds? 

The time limit for claiming overpaid tax is four years after the end of the tax year in which you have overpaid it. 

In the United Kingdom, a tax year begins on the 6th of April and ends on the 5th of April.