How do I claim back tax I have overpaid through PAYE on wages?

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This section looks at what to do if you have paid too much tax on your wages and what the time limits are for making a claim.

\r\nFirst, though, we look briefly at HMRC’s P800 tax calculation process, which may mean you do not need to claim a repayment, as HMRC will issue any repayment automatically. If you have not received a P800 tax calculation from HMRC, and you have overpaid tax, you will need to make a claim for a tax repayment.\r\n

What is a P800 tax calculation?

\r\nYour employer gives HM Revenue & Customs (‘HMRC’) details of how much income you have received, how much tax you have paid and the value of any benefits in kind you have received during the tax year.\r\n\r\nUsing this information, HMRC carry out an automatic reconciliation at the end of each tax year to work out whether or not you have paid the right amount of tax. If HMRC think you have not paid the right amount of tax, they send you a P800 tax calculation. This calculation will show you what tax HMRC think you should have paid.\r\n\r\nYou must always check your P800 tax calculation carefully, as HMRC may not have all the information they need to calculate your tax correctly, or they may have inaccurate information.\r\n\r\nIf HMRC think you have overpaid tax, they will send you a repayment of tax automatically – you do not need to make a claim.\r\n\r\nIf HMRC think you have not paid enough tax, they will write to you explaining that they intend to collect the underpaid tax through your tax code or telling you how you can repay it to them.\r\n\r\nFor more information on what to do if you receive a P800 tax calculation, please read our detailed news article.\r\n

How do I claim a refund for the current tax year?

\r\nIf you receive employment income and pay tax through the PAYE system you may sometimes pay too much tax. There are various reasons for this, such as being given an incorrect PAYE code.\r\n\r\nIf you think you have overpaid tax through PAYE in the current tax year, tell HMRC before the end of the tax year why you think you have paid too much. It is probably best to telephone them initially – the helpline for individuals and employees can be found on the GOV.UK website.\r\n\r\nBefore you telephone HMRC, you will need to gather together:\r\n

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• your personal details – such as your full name, address, date of birth and National Insurance number;

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• details of each of your employers – their PAYE scheme reference number, which should be shown on your payslip, or ask your employer for it;

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• estimates of your earnings from each source for the current tax year.

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\r\nMake sure you keep a note, in a safe place for future reference, of:\r\n

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• the date and time of the phone call;

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• the name of the adviser you spoke to; and

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• what was said by both you and the HMRC adviser.

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\r\nYou may need to send in more information to support your claim and, if so, HMRC will let you know what paperwork you should supply.\r\n\r\nOnce HMRC process your claim it might be necessary to issue you with a new tax code, meaning any refund will be added to your wages and the amount will generally be paid automatically through the payroll. This will result in a lower tax deduction or a tax refund through PAYE.\r\n\r\nHowever, if the repayment is due towards the end of the tax year and you have already received your final pay for that year, you may have to claim a refund directly from HMRC.\r\n

How do I claim a refund if I have stopped working part way through the tax year?

\r\nIf you have stopped work part way through the tax year and are not going to have a continuing source of taxable income – for example, you are not intending to go back to work within four weeks or claiming a state benefit – you should be able to claim an in-year tax repayment using form P50.\r\n\r\nYou can use Verify on GOV.UK to complete form P50, this means that you complete and submit the form on-line and should not need to send in copies of your P45 (the form that is given to you by your employer when you leave employment with them). However, if the details on your form P50 do not match HMRC payroll records then you may be asked to send HMRC parts 2 and 3 of your P45.\r\n\r\nIf you do not use Verify to complete Form P50 then you must send parts 2 and 3 of your P45 (see above) together with form P50 to HMRC. If you are entitled to a repayment of income tax, HMRC will send it to you – usually in the form of a cheque by post.\r\n\r\nYou cannot use form P50 if you are claiming, or intending to claim, a state benefit such as jobseeker’s allowance (‘JSA’).\r\n\r\nIf, for example, you stop work in June, having been employed at some point since the beginning of the tax year on 6 April, and you do not get another job but start to claim JSA, you will need to let Jobcentre Plus have parts 2 and 3 of your form P45 from that paid work. They will then put the details on to their computer. If you have already paid some tax under PAYE in the year, you will not get this refunded until the earlier of:\r\n

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• ceasing to claim JSA – in which case your refund comes from Jobcentre Plus;

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• the end of the tax year – in which case, you have to liaise direct with HMRC for your refund.

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How do I claim a refund after the end of the tax year and for previous tax years?

\r\nIf you have paid too much tax through your employment and the end of the tax year in which you overpaid tax has already passed, you can make a claim for a refund by writing to HMRC.\r\n\r\nMark the top of your letter clearly with ‘repayment claim’ so that HMRC prioritise it on receipt.\r\n\r\nYou can call HMRC for a quick answer and resolution on this HMRC Contact Number.\r\n\r\nYou can also write to HMRC using the tax office address of your current employer or the postal address on the most recent correspondence you have from HMRC. If you do not have any recent documents or letters from HMRC, use the address on their website.\r\n\r\nBelow for an idea of how to write your letter and what you might include. But generally your letter, should:\r\n

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• give your full personal details – your name, address and national insurance number;

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• include as much information as possible about your employment history – for example, PAYE reference numbers for your employers, dates of employment, how much you earned and how much tax was deducted;

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• enclose copies of P60s and P45s if you have them – keep the originals;

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• say why you think you are due a repayment;

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• be signed and dated in ink.

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\r\nKeep a copy of your letter and any enclosures and ask the Post Office for proof of posting in case of later query.\r\n\r\nHMRC say they usually aim to process PAYE repayments within eleven weeks of receipt. In some cases, HMRC will need to carry out security checks. You may need to call HMRC for a quick answer. You can use this HMRC Contact Number.\r\n

HMRC are repaying tax refunds electronically by reimbursing the amount directly onto the debit or credit card used to make your last tax payment. Contact HMRC if you do not want this to be the case, for example, if someone else used their card to pay your tax and you do not want them to get your refund.

\r\nIt might help to speed up the repayment if you ask HMRC to pay it directly into your bank account. To request a direct bank transfer, include in the letter:\r\n

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• the name of the account holder(s);

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• the sort code; and

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• the account number.

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\r\nHowever be aware that HMRC might want to make additional security checks if you request repayment into an account which is not in your own name.\r\n\r\nIn most cases you can get back the tax you have overpaid as long as you claim on time. The time limits for claiming a refund are shown in the section below. If you fail to make a claim within the time limit, you will miss out on any refund due.\r\n

What are the time limits for claiming back overpaid tax?

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