How to Claim a Tax Refund From HMRC: Step-by-Step Guide (2026)

Paying more tax than you actually owe happens more often than many people think. A change of jobs, incorrect tax codes, emergency tax deductions, work expenses, or changes in income can all result in paying too much tax during the year.

The good news is that if you have overpaid, you may be able to claim the money back from HMRC. In some situations HMRC sends refunds automatically, but in others you need to make the claim yourself.

This guide explains who can claim a tax refund, common reasons people overpay tax, and the exact steps to get your money back.

Who Can Claim a Tax Refund?

You may be eligible for a tax refund if:

You were placed on an emergency tax code
You stopped working during the tax year
You changed jobs
You had multiple jobs
You started receiving a pension
You claimed work expenses
Your employer used an incorrect tax code
You became self-employed
You paid tax on savings or investments incorrectly

Even a small mistake in payroll can create an overpayment over time.

Common Reasons People Overpay Tax

Emergency Tax Codes

Emergency tax codes are one of the most common causes of overpaid tax in the UK.

If your employer does not have complete information about your previous earnings or tax history, temporary tax codes may be used. This often results in larger deductions than necessary.

Common examples include:

1257L W1
1257L M1
X codes

These are often temporary but can lead to overpayments.

Starting or Leaving Employment

Changing jobs during the tax year sometimes creates calculation issues.

For example:

You leave one employer in June and start another job in July. If payroll information is delayed, the new employer might assume you have already used your annual tax allowance.

That can result in higher deductions.

Work Expenses

Some employees can claim tax relief for work-related costs including:

Uniform cleaning costs
Professional memberships
Tools and equipment
Mileage expenses
Working from home expenses (where applicable)

Many people never claim these and effectively pay more tax than necessary.

How to Check Whether You Overpaid Tax

Before making a claim, check your tax information.

Useful documents include:

Document

Purpose

P60

Shows yearly pay and tax

P45

Shows income when leaving a job

Payslips

Shows deductions

Self Assessment return

Used for self-employed individuals

You can also review your information through your HMRC online account.

Compare:

Total earnings
Tax paid
Tax code
Allowances

If something looks incorrect, you may have paid too much.

Step-by-Step: How to Claim a Tax Refund

Step 1: Check Your Tax Code

Your tax code appears on:

Payslips
P60
HMRC account

The standard tax code for many people is:

1257L

An unusual code does not automatically mean something is wrong, but it should be checked.

Step 2: Gather Documents

Prepare:

National Insurance number
P60
P45 if available
Payslips
Employer details
Bank information

Having everything ready speeds up the process.

Step 3: Contact HMRC or Use Your Online Account

Depending on your situation, HMRC may allow claims through:

Online services
Forms
Self Assessment
Telephone support

Some refunds are processed automatically without additional action.

Step 4: Wait for Processing

Refund times vary.

Typical timelines:

Method

Approximate Time

Online claim

2–6 weeks

Postal claim

6–12 weeks

Self Assessment

Depends on return processing

Times may change during busy periods.

How Will HMRC Send The Refund?

Refunds are commonly issued through:

Direct bank transfer
Cheque
Adjustment to tax code
Self Assessment payment process

Always verify communication carefully.

HMRC scams are common, particularly through text messages and emails.

Be cautious if a message:

Creates urgency
Requests passwords
Asks for unusual personal information
Contains suspicious links

Frequently Asked Questions

How do I know if HMRC owes me money?

You can check your online tax account, review your tax code and compare total earnings against tax paid.

Can I claim a tax refund for previous years?

In many situations claims can be made for previous tax years, although time limits may apply.

How long does a tax refund take?

Online claims are often quicker and can take several weeks, while postal claims may take longer.

Do tax refunds happen automatically?

Sometimes yes. HMRC occasionally identifies overpayments and issues refunds automatically, but not all cases are handled this way.

Do I pay tax on my refund?

Generally, the refund itself is simply money you previously overpaid.

Key Takeaways

Overpaying tax is common and often happens because of emergency tax codes, job changes, or missed allowances. Before claiming, review your records carefully and make sure the information matches your earnings and tax situation.

A few minutes checking your tax details could potentially return money that belongs to you.