PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Tax Refunds

Income Tax

There are a variety of reasons why you might be due a tax refund. The most common reason is that you have overpaid tax at source on employment or savings income. How to get you refund will depend on whether you are taxed under PAYE, are self-employed,  or due a refund on savings income.

  • If you are due a refund of tax on savings, you would normally use form R40 to claim a refund. This might apply if you are not in paid work, or are a pensioner on low income. If you are due over £50, you may be able to apply for a refund before the end of the tax year. This is unlikely to apply after 6 April 2016, as savings interest will not normally be taxed at source
  • If you are a pensioner or employee and have received a P800 tax calculation showing a refund, it is important to check that the figures are correct. Please see the section Underpayments of PAYE
  • It is possible to claim a refund during the tax year if you are an employee and stop working part-way through the year and are not claiming any taxable benefits. You may use form P50 to do this. This can be downloaded from the Gov.uk website P50 page
  • If you take a lump sum instead of receiving a small pension (called commuting the pension) you may overpay tax and be due a refund
  • If you are self-employed you will normally submit a self-assessment tax return each year. If you have overpaid tax, this should be shown on the tax calculation, if you submit your return on-line. Whether you submit your return on paper or on-line, HMRC should automatically send you any refund due once the return has been processed

There are other circumstances when you could be due a refund, such as when someone dies, or if you leave the UK to live or work abroad. There is information on these and other refund issues on the Gov.UK website tax refunds page.