Tax refunds

Paying too much tax is frustrating — but overpayments happen more often than people think, and most are straightforward to recover. This guide explains why overpaid tax happens, when you can claim, and how to do it safely.

How overpayment happens

The most common causes:

• A wrong tax code — e.g. the BR or emergency code with no allowance, or the allowance split across two jobs
• Employment ending partway through the year, leaving unused allowance
• Multiple jobs where too much tax is withheld in total
• Tax deducted from savings interest when you should have had a savings allowance
• Work expenses you’re entitled to relief on that weren’t claimed
• Wrong tax band applied because HMRC was working from an old year’s income

Refunds through PAYE

For most employees, HMRC works out at the end of the tax year whether you paid the right amount — this is the PAYE reconciliation. If you overpaid, you usually get the money automatically: either into your bank account or through a better tax code for the following year. You don’t have to do anything, but you should check your P60 and any PAYE tax calculation HMRC sends you.

Claiming sooner

If you don’t want to wait for the year end — for example you left a job and won’t work again this tax year — you can claim directly. Use your Personal Tax Account on GOV.UK or phone HMRC. If you overpaid because your tax code was wrong mid-year, updating your code can trigger a refund of the difference.

Work expenses relief

If you paid for something essential for your job that your employer didn’t reimburse — such as uniform cleaning, tools, or professional fees — you can claim tax relief on the cost. For basic-rate taxpayers that’s worth 20% of the cost, 40% for higher-rate taxpayers. You can usually claim for up to four years back. Small flat-rate claims (like £60 a year uniform allowance for many roles) are common.

Self-employed overpayments

If you’re self-employed, any overpayment is sorted through your Self Assessment return — the return calculates what you owe and the balance is refunded to your bank account. If your income dropped, your payments on account for the following year can be reduced too.

Beware refund scams

Fraudsters impersonate HMRC, claiming you’re due a refund and asking you to click a link or share bank details. HMRC never contacts you by email or text to offer a refund. Official refunds come through GOV.UK, your Personal Tax Account, or post. If in doubt, ignore it and report it to HMRC on GOV.UK.

Check your own figures

Work out what your tax should be with the income tax calculator or the salary calculator — compare the result with the tax shown on your P60 to see whether a refund is likely.