No one likes paying more tax than they owe, so if you’ve overpaid, it’s only fair to claim it back. There are a few reasons why this might happen, from incorrect tax codes to changes in income, and the process for getting your money back depends on how the overpayment arose.
Here’s a simple guide to help you understand how to claim a tax refund – whether you’re an employee or self-employed.
Employees: Have You Paid Too Much Tax?
If you’re employed, you might have overpaid tax if:
- Your tax code was incorrect
- You incurred work-related expenses that you can claim tax relief on
How to Claim a Tax Refund as an Employee
- Claim for Work-Related Expenses
If you’ve paid for job-related expenses (such as uniforms, tools, or travel for work), you can claim tax relief on these.- Use HMRC’s online service or fill out a P87 form and send it by post.
- Make sure you include evidence like receipts or expense records.
- Received a P800 Tax Calculation Letter?
- If you’ve had a P800 letter from HMRC saying you’re owed a refund, follow the instructions in the letter.
- Many people can claim online via the Gov.uk website using their P800 reference number and National Insurance number.
- Refunds are usually paid into your bank account within five days.
- If HMRC Says You’ll Receive a Cheque
- Some refunds are sent automatically by cheque, so if your P800 letter states this, you don’t need to do anything – just wait for it to arrive.
- Cheques should arrive within 14 days of the P800 letter being issued.
- Check Your HMRC Account
- You can also check your tax position and claim refunds via your Personal Tax Account or the HMRC app.
If you think you’re due a refund for 2023/24 but haven’t received a P800 yet, you should get it by the end of March.
Self-Employed? Here’s How to Claim a Self Assessment Refund
If you’re self-employed, you may have overpaid tax due to:
- A fall in income, meaning your payments on account were too high
- A loss relief claim, reducing your tax liability
How to Claim a Tax Refund as a Sole Trader or Self-Employed Person
- Request a Refund on Your Tax Return
- If your Self Assessment tax return shows that you’ve overpaid, you can request a refund directly in the return.
- HMRC will usually process the refund automatically within two weeks.
- Claim a Refund Through Your HMRC Account
- If you didn’t request a refund in your return, you can do it later by logging into your Self Assessment account.
- Simply select ‘Request a Repayment’ and follow the steps.
- Use Your Personal or Business Tax Account
- Sole traders and businesses can claim refunds via their Personal Tax Account or Business Tax Account by selecting ‘Claim a Refund’.
- Refunds are usually processed within two weeks.
- How Will You Get Your Refund?
- HMRC will typically pay refunds directly into a UK bank account, but you can request a cheque instead if preferred.
Need Help Claiming a Tax Refund?
If you think you’ve overpaid tax, don’t let HMRC keep your money! Understanding the rules and making the right claim can help you get your refund quickly and hassle-free.
Not sure if you’re owed a refund or need help navigating the claim process? Get in touch with Jon and the team today—we’ll make sure you get every penny you’re entitled to.
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Any questions?
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