How to Check If HMRC Owes You a Tax Refund — and How to Claim It

Millions of UK workers are due tax refunds every year — many without knowing it. HMRC estimates it issues around £5 billion in income tax refunds annually, but a significant number go unclaimed, often because people don't realise they've overpaid. If you changed jobs, worked part of a year, had multiple income sources, or claimed certain expenses, there's a good chance HMRC owes you money.

Here's exactly how to check — and how to claim what's yours.

Why Overpayments Happen

The UK tax system works on the assumption that your employer will pay you a consistent salary throughout the year. When life doesn't match that assumption — redundancy, career breaks, multiple jobs, starting self-employment — the system can over-collect tax.

Common reasons for overpayment include: having an emergency tax code when starting a new job (usually BR or 0T), being on a temporary or zero-hours contract, working only part of the tax year, withdrawing pension lump sums under HMRC pension withdrawal rules, having your personal allowance split incorrectly across multiple employers, and claiming employment expenses like professional subscriptions or working from home allowances after the fact.

The tax year in the UK runs from 6 April to 5 April. HMRC typically reconciles your tax position after each year ends, which means refunds for 2025–26 may start arriving from June 2026 onwards.

How HMRC Tells You

If you're a PAYE (Pay As You Earn) employee, HMRC should automatically send you a P800 tax calculation letter in the summer following the end of each tax year. This letter tells you whether you've overpaid or underpaid. If you've overpaid, you can claim your refund online through your Personal Tax Account or by cheque through the post.

Not everyone gets a P800 automatically — HMRC only sends them where it has sufficient information. If you haven't received one and you think you're due a refund, you need to check yourself.

Step-by-Step: How to Check and Claim

Step 1 — Create or sign in to your Personal Tax Account. Go to gov.uk/personal-tax-account and sign in with Government Gateway. If you don't have an account, you can create one in around 10 minutes with your National Insurance number and a form of ID.

Step 2 — Check your tax codes. Look at the tax codes on your payslips and P60. If any code starts with BR, 0T, or is lower than the standard 1257L (the standard personal allowance code for 2025–26), you may have overpaid. Compare this with your PAYE coding notice (P2) if you have one.

Step 3 — Review income and deductions. Inside your Personal Tax Account, HMRC shows the income it holds for you from employers, pensions, and benefits. Check this matches your actual earnings — errors in employer reporting sometimes cause incorrect tax collection.

Step 4 — Claim online or wait for a P800. If your Personal Tax Account shows an overpayment, you can request a refund directly. Refunds are typically paid within 5 working days to your bank account, or up to 6 weeks if paid by cheque.

Step 5 — If self-employed, file a Self Assessment return. Any overpayment will be shown on your Self Assessment return after submission. You can ask for a repayment when filing, or leave it as a credit against next year's bill.

Don't Use a Refund Company

Which? and Citizens Advice both warn strongly against tax refund companies that charge a percentage of your refund — often 25–40% — to do something you can do for free in 10 minutes yourself. Some operate by getting you to sign a deed of assignment that redirects your refund to them, making it difficult to cancel. HMRC's own tools and the Personal Tax Account are free to use.

In comparison, the US IRS offers a free "Where's My Refund?" tool and encourages taxpayers to use its Free File service. Australia's myTax via myGov similarly allows self-service refund claims at no cost.

Checklist: Claim Your HMRC Refund

• Check for a P800 letter in the post (usually sent June–October after each tax year ends)
• Log in or create your Personal Tax Account at gov.uk
• Review your tax codes on payslips and P60 — look for BR, 0T, or lower-than-expected numbers
• Verify income figures HMRC holds against your actual pay
• Request refund online (faster) or wait for postal cheque
• If self-employed, include any overpayment claim in your Self Assessment return
• Never pay a third-party company to claim your refund for you

Key Numbers

• £5 billion: estimated annual income tax refunds issued by HMRC
• 1257L: standard tax code for the 2025–26 tax year (£12,570 personal allowance)
• 5 working days: typical time to receive a bank transfer refund
• 25–40%: fees charged by commercial tax refund companies — avoid

Sources

• Gov.uk: Tax overpayments and underpayments
• Gov.uk: Personal Tax Account
• Which?: Don't fall for tax refund claim companies
• HMRC: Interest rates for late and early payments

Educational content only — not financial advice.