HMRC Tax Refund: How to Find Out If You Are Owed Money

Many people do not realise that HMRC may discover they have paid more Income Tax than necessary by the end of the tax year. This is known as a tax overpayment, and you may be entitled to claim the money back through a Tax Refund. Overpayments can happen for several reasons, including an incorrect tax code, changing jobs during the year, receiving payments from two employers at the same time or inaccurate income information.

After the end of the tax year, HMRC usually reviews the income and tax information reported on your record. If a difference is identified, you may receive a P800 tax calculation letter. It explains whether you are entitled to a refund or whether you have additional tax to pay. If you complete a Self Assessment tax return, any overpayment is generally dealt with when HMRC processes your return, so you may not receive a separate P800 letter.

You can check your tax position through your Personal Tax Account or the HMRC app. If your P800 confirms that you are due a refund, it will explain what to do next. Depending on the available options, you may receive the money by bank transfer or cheque. According to HMRC, online refunds are usually paid within 5 working days after you make a claim, while a cheque can take up to 6 weeks. It is important to check that the tax calculation is correct before accepting the repayment.

If you believe you have overpaid tax but have not received a notification from HMRC, it does not necessarily mean that you are not entitled to a refund. You should review your tax records, income details and the amount of tax deducted. Capital Accountants can help you review your circumstances, check your tax calculations and establish whether you may be eligible for a Tax Refund