HMRC Might Owe You Money: How to Check and Claim a Tax Refund

Millions of people overpay income tax every year in the UK without realising it. HMRC repaid over £5 billion in income tax refunds in 2024/25, much of it claimed by people who actively checked their records. If you have changed jobs, been on an emergency tax code, received a pension lump sum, or had employment gaps, there is a good chance HMRC owes you money. Here is how to find out and claim it.

Common Reasons You Might Be Owed a Refund

Emergency tax codes: When you start a new job and your employer does not have your P45, HMRC may put you on an emergency tax code (typically 1257L W1/M1 or BR). These can result in you paying more tax than you should, because the code treats your earnings as if they continue at that rate for the whole year.

Leaving a job partway through a tax year: If you stopped working for part of the year, you may have paid tax as though you would earn that salary for 12 months — but your actual annual income was lower, pushing you into a lower tax band or below the personal allowance entirely.

Pension withdrawals: Taking money from a pension pot (a flexible drawdown withdrawal) is taxed at source, often using an emergency code. The rate applied can be far higher than your actual liability.

Marriage Allowance: If you are married or in a civil partnership and one of you earns under the personal allowance (£12,570 in 2025/26), the lower earner can transfer up to £1,260 of their allowance to the higher earner — saving up to £252 per year. You can claim this going back up to four tax years.

Professional expenses and subscriptions: If you pay for professional memberships, union dues, or work-related tools out of your own pocket, you may be able to claim tax relief on these.

Step-by-Step: How to Check and Claim

Step 1 — Log Into Your Personal Tax Account

Go to gov.uk/personal-tax-account and sign in with your Government Gateway credentials. If you do not have an account, you can create one in around 10 minutes — you will need your National Insurance number and a form of ID.

Step 2 — Check Your Tax Code

In your personal tax account, look at your current and past tax codes. If you see any of the following, you may have overpaid:

• BR: Basic rate applied to all income (no allowances)
• D0: All income taxed at 40%
• W1 or M1: Month-by-month tax calculation, not cumulative
• A code significantly lower than 1257L without an obvious reason

If your code looks wrong, call HMRC on 0300 200 3300 or update it via your personal tax account.

Step 3 — Check Your P60 and Payslips

Compare your P60 (which your employer must give you by 31 May each year) against your expected tax. If total tax paid looks disproportionately high relative to your income and tax band, investigate further.

Step 4 — Use the HMRC Tax Checker

HMRC's Income Tax calculator lets you input your salary and see your expected tax. Compare this to what you actually paid.

Step 5 — Claim Online

If you believe you have overpaid, you can claim a refund through your personal tax account. Alternatively, use the relevant HMRC form depending on the reason for overpayment. Refunds are typically processed within 30 days and paid directly to your bank account.

For pension withdrawal overtaxing, the specific forms are P50Z, P53Z, or P55 depending on your circumstances.

Step 6 — Go Back Up to Four Years

You can claim a refund going back up to four tax years. That means the 2022/23 tax year is still claimable until April 2027. Do not assume it is too late.

Watch Out for Refund Scams

HMRC does not email or text people to tell them they have a refund. Any unsolicited message saying "click here to claim your tax refund" is a scam. Always go directly to gov.uk and log into your personal tax account.

Checklist

• Log into your personal tax account
• Check your tax code — watch for BR, D0, W1/M1
• Review your P60 for the last four years
• Check Marriage Allowance eligibility
• Use the HMRC income tax calculator to verify what you should have paid
• Claim refund online or via the relevant HMRC form
• Never click links in unsolicited "refund" emails or texts

Key Numbers

• Personal allowance 2025/26: £12,570
• Marriage Allowance transfer: up to £1,260 per year
• Max saving from Marriage Allowance: £252 per year
• Claim window: up to 4 tax years back
• HMRC Income Tax helpline: 0300 200 3300

Sources

• GOV.UK: Claim a tax refund
• GOV.UK: Personal tax account
• GOV.UK: Marriage Allowance
• GOV.UK: Income tax rates and allowances

Educational content only — not financial advice.