How do I get a tax refund?

As an employee, your tax is calculated and paid through the PAYE scheme. The payment will be shown on your payslip and paid to HMRC by your employer without you having to do a thing. 

The amount of tax you pay will be calculated using your tax code. Where your circumstances are more complicated, or things change it may mean you overpay or underpay tax. This includes: 

• Wrong tax code applied to your income 
• You left and restarted a job in the same month 
• You started to receive a pension 
• You received employment and support allowance of jobseeker’s allowance 

When you overpay tax through PAYE, after the end of the tax year, which is 6th April, the overpayment will be calculated by HMRC and confirmed to you in a letter. The letters are sent between June and November. If you do not get a letter, it is likely you are not due a tax refund. However, if you think you are due a refund but do not receive a letter you can use HMRC’s tax refund tool. 

While HMRC used to issue a cheque refund automatically to individuals, from 31st May 2024 this changed. The letter now confirms how to get the refund, and individuals will need to take action rather than waiting for a cheque. You can claim your refund online or request a cheque repayment. You can also use the HMRC app, or your personal tax account.  If you request a refund online you will receive the money in five working days. 

Date published 15 Jul 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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