If you have paid too much tax, you may be eligible for a tax refund (tax rebate or repayment). The time in which you receive your refund varies depending on several factors.
If you’re considering claiming a tax refund, it’s advisable to fully understand the process beforehand. Read on to learn everything you need to know about tax refunds in the UK and how to gain a repayment through HMRC.
What is a Tax Refund?
A tax refund is a type of payment issued to a taxpayer who has overpaid taxes to the government. It’s essentially a repayment of what you’ve already paid. Usually, HMRC will know if they owe you a refund by the end of the tax year.
Saying this, there’s no stopping you from raising the issue sooner and claiming a refund if you believe you’re entitled to one. We understand that it may be difficult to recognise when and why a refund could be due, but we’re here to help.
Are You Due a Tax Refund?
If you suspect you’re due a tax refund, you may be owed money back from HMRC. Tax refunds are typically due when someone has too much tax withheld by their employer from their paychecks. However, there are some other key reasons why you may be due a refund:
- Change in jobs
- Issued an incorrect tax code by either HMRC or your employer
- Got paid by two different employers in the same timeframe
- Began receiving your pension before you stopped working
- Started receiving Job Seekers Allowance
- Had a break from working
If you think you may be eligible for a tax refund and don’t want to wait for HMRC to inform you that you’ve overpaid, you will need to check your payments yourself.
5 Ways to Check if You’ve Overpaid Tax
If you think that you’ve overpaid tax, you can check if you’ve overpaid tax by:
- Waiting for HMRC to get in touch at the end of the tax year
- Manually checking your tax payments by logging into your HMRC account
- Using the tax checker on the HMRC website
- Checking your tax code to see if it’s incorrect
- Reviewing previous payslips
Finding out whether you’re due a tax refund is relatively straightforward with access to the right resources (such as HMRC’s portal and tax checker tool). Although it requires some dedicated time to sit through and assess your previous tax payments, it’s worthwhile if you believe you’re owed money.
How to Claim a Tax Refund
There are two ways to claim a tax refund in the UK:
- Online – using your Personal Tax account
- By post – sending your repayment claim directly to HMRC
HMRC can take up to 12 weeks to process a tax refund claim. How long your claim takes to process depends on HMRC’s processing times.
Can Anything Affect Tax Refund Timeframes?
Yes, there are a few things that can affect the HMRC tax refund timeframe:
- Busy periods (such as self-assessment deadlines in January)
- Submitting incorrect information
- Making a claim via post, which takes longer to be processed
- Claiming for a larger refund amount
- Failing to provide additional information when asked by HMRC
There is no way of changing HMRC’s processing timeframe, as it’s in their hands once your claim is made. If your claim is taking a while to go through, there’s no harm in contacting HMRC and asking what’s going on. Ideally, you should give them a few weeks before contacting them directly.
Tax Refund Deadlines
The tax refund deadline is four years from the end period of the tax year.
For example:
For the current 2024-25 tax year (ending on the 5th of April 2025), you have until the 5th of April 2029 (which is exactly four years from the end of this tax year) to make a tax refund claim.
How Long Does a Tax Refund Take to Go Into the Bank?
If you made your claim online, it will take five working days for your refund to go into your bank. If you fail to claim online within 21 days, you’ll likely receive a cheque (unless HMRC has your bank details).
Cheques can take roughly six weeks to arrive. It’s no secret that filing a claim for a tax refund online and on time will result in a quicker processing time, meaning you’ll likely have your rebate money in your bank account faster.
Tax Returns and Claims Made Simple
At LJS Accounting Services, we have a team of friendly and professional accountants to help make tax refund claims easier to understand. We work closely with clients seeking tax refunds from HMRC.
Not only can we assist you with filing your tax return on time, we can make the process of claiming a tax rebate a simple and hassle-free process.
Trusted for over a decade, you can rely on us for specialist advice, support, and guidance. If you want assistance with your tax returns and refund claims, look no further.
Contact us today to discuss our tax services. We look forward to speaking with you soon!
Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.
