How to Claim a UK Tax Refund in 2025-26: PAYE & Self Assessment Guide

Millions of UK taxpayers overpay income tax every year, but many never reclaim it. HMRC does not always issue refunds automatically — in some cases you need to claim. The average refund for common scenarios is between £300 and £500, and you can claim back up to four years.

Why you might have overpaid tax

• Wrong tax code: If HMRC issued an incorrect code (for example, BR instead of 1257L), you may have been taxed on your full income without the Personal Allowance.
• Multiple jobs: Your Personal Allowance applies once. A second employer often uses a BR (Basic Rate) code, which can over-deduct if your combined income is actually below the Higher Rate threshold.
• Leaving a job mid-year: PAYE assumes you work the full year. If you leave a job in August, you will have received only five months of allowances against five months of income — and may be owed a refund.
• Redundancy: The first £30,000 of a redundancy payment is tax-free, but employers sometimes deduct PAYE at the time and HMRC corrects it later.
• Emergency tax code: Starting a new job without a P45 triggers an emergency code, often over-taxing until HMRC updates its records.

Method 1 — P800 letter (automatic)

After the tax year ends, HMRC reconciles PAYE records and sends a P800 tax calculation letter if you have overpaid. This usually arrives between June and October. If the P800 shows a refund, you can claim online at gov.uk/claim-tax-refund or HMRC will send a cheque automatically within 45 days if you do nothing.

Method 2 — Personal Tax Account (online)

You can check whether you have overpaid and request a refund at any time via your Personal Tax Account at gov.uk/personal-tax-account. Log in with Government Gateway, navigate to "Check your tax" and then "Get a tax refund." Bank transfers typically arrive within three to five weeks.

Method 3 — Call HMRC

If you cannot use the online service, call HMRC on 0300 200 3300 (Monday to Friday, 8am–6pm). Have your National Insurance number and details of your income and employment to hand. HMRC can process refunds by bank transfer or cheque over the phone.

Method 4 — Self Assessment return

If you complete a Self Assessment return, any overpayment of tax is calculated automatically when you submit. HMRC will apply it against any balance owed first, then refund the remainder. Refunds from Self Assessment typically arrive within three weeks if submitted online.

How far back can you claim?

You can claim a refund for up to four previous tax years. For 2025-26, that means you can claim back to 2021-22. Claims for older years are out of time. Use form R40 if you want to claim a refund on savings interest or pension income without completing a full Self Assessment return.

How long does HMRC take?

Bank transfers typically take three to five weeks after HMRC processes the claim. Cheques take slightly longer. If you have not received your refund after eight weeks, contact HMRC to chase.

Frequently asked questions

Can I claim a tax refund if I am employed (PAYE)?

Yes. PAYE employees are the most common recipients of tax refunds. You do not need to be self-employed or file a Self Assessment return to claim.

Will HMRC contact me automatically?

HMRC sends P800 letters after the tax year ends, but only if their records are complete. If your employer has not submitted accurate PAYE data, you may need to claim yourself. It is always worth checking your Personal Tax Account.

Is my tax refund taxable?

No. A repayment of overpaid income tax is not itself taxable income.