Breaking It Down for You
Have you overpaid tax and don’t even know it?
You wouldn’t be the only one! Every year, thousands of people unknowingly leave their tax refunds unclaimed, simply because they’re unsure of how to get their money back.
The good news? If you've paid too much tax, you can claim a refund, and we’ve broken it down into 9 simple steps.
Whether you’re a PAYE employee, self-employed, or claiming for previous years, this guide will walk you through the exact process to make sure HMRC sends you the refund you’re owed. Let's go!
Step 1 – Check If You’ve Overpaid Tax
Think you’ve paid too much tax? It happens more often than you’d think!
A wrong tax code, emergency tax, job changes, or simple miscalculations can all lead to overpaid tax, but the good news is, you can claim a refund if you're owed one.
If you’re on PAYE, check your payslip, P60, or P45 to see if too much tax was deducted. A wrong tax code or an emergency tax code is a common reason for overpayments.
For the self-employed, review your self-assessment tax return to spot any errors in your tax calculation or missed deductions. If something looks off, you can amend your assessment tax return and start a repayment claim.
Don’t forget about council tax refunds! If you’ve moved, overpaid, or were in the wrong council tax band, you might be owed money.
Not sure where to begin? Our free Pie Tax app helps you check for overpayments and claim your refund hassle-free, so your money ends up where it belongs!
Step 2 – Gather Your Essential Documents
Before you can claim a tax refund, you need to have the right paperwork!
HMRC won’t just take your word for it, you’ll need proof that you’ve paid too much tax. Gathering everything in advance will make the process smoother and help you avoid delays.
Start with your payslips, P60, or P45. These show how much tax was deducted from your PAYE income and help confirm if you’ve overpaid tax. If you’re self-employed, you’ll need your self-assessment tax return records to check for errors or overpayments.
Next, make sure you have your National Insurance number and Unique Taxpayer Reference (UTR) handy. These are essential for HMRC to verify your identity and process your repayment claim.
If you’re looking into a council tax refund, you’ll also need your council tax account reference. Overpaid? You could be entitled to money back!
Step 3 – Verify Your Tax Code
Your tax code is the key to making sure you’re paying the correct amount of tax, but if it’s wrong, you could end up overpaying (or worse, underpaying and facing a surprise bill later!). Checking it regularly can help you avoid unnecessary tax deductions and ensure you get any refunds owed.
An incorrect tax code often leads to too much tax being taken from your PAYE income, especially if you've recently changed jobs, received jobseeker’s allowance, started a pension, or had multiple sources of income. HMRC assigns tax codes based on your personal circumstances, but mistakes happen, so it’s always worth checking.
To review your tax code, log into your Personal Tax Account on the HMRC website or check your payslip, P60, or P45. If it looks off, you may need to update your tax code by submitting a correction online or calling HMRC.
If you’ve been on an emergency tax code or notice unexpected deductions, it’s time to contact HMRC. A quick check could mean an instant tax repayment, because no one wants to leave money with the taxman longer than they have to!
Step 5 – Submit Your Tax Refund Claim
You’ve checked your tax code, gathered your documents, and now it’s time for the big moment: actually submitting your refund claim! Here’s how to do it depending on your situation.
- PAYE & Self-Assessment Refunds – If you’ve overpaid tax through PAYE, the quickest way to claim is through your Personal Tax Account on the HMRC website. For self-assessment refunds, log into your Self-Assessment portal and request a repayment. PAYE refunds usually land in your bank account within 5–10 working days, while self-assessment claims take around 4 weeks (sooner if filed online).
- Council Tax Refunds – Overpaid council tax? You’ll need to contact your local authority and provide your council tax account reference to request a refund. Processing times vary, but most councils issue payments within 30 days.
- How Far Back Can You Claim? – Don’t let past refunds slip away! HMRC lets you claim overpaid tax from the last four tax years, so if you think you've missed out, now’s the time to get your money back.
Submitting your claim is the final step, so double-check your details to avoid delays and get paid as quickly as possible!
Step 6 – Track Your Refund Status
Waiting for your tax refund can feel like watching paint dry, but luckily, you can track its progress to see when it’ll hit your bank account.
- Check Your Refund Status Online – The easiest way to track your claim is by logging into your Personal Tax Account on the HMRC website. Here, you can check if your refund payment has been approved and when it’s due to be sent.
- How Long Does It Take? – PAYE tax refunds usually take 5–10 working days, while self-assessment refunds can take up to 4 weeks (or 8+ weeks if you submitted a paper claim). Council tax refunds, handled by local authorities, generally take 30 days after approval.
- What If It’s Delayed? – If your refund is taking longer than expected, common reasons include security checks, incorrect bank details, or missing paperwork. If it’s been longer than HMRC’s usual processing times, it’s worth contacting HMRC for an update!
Step 7 – What to Do If Your Refund Is Rejected
Got your tax refund rejected? Annoying, but it doesn’t always mean you’re not owed money. Here’s what to do next.
- Check for Errors – Mistakes in your tax return, missing documents, or ineligible claims are common reasons for rejection. Review your self-assessment records, tax code, and bank details to spot any issues.
- Appeal the Decision – If you believe HMRC made a mistake, you can challenge their decision by submitting an appeal with supporting evidence like payslips, P60s, or proof of deductions.
- Contact HMRC – Still unsure? Reach out to HMRC via phone, online chat, or your Personal Tax Account to clarify the issue and find out what’s next.
A rejection isn’t always final, just fix the problem, appeal if needed, and you could still get your refund!
Step 8 – Avoid Overpaying Tax in the Future
Claiming a tax refund is great, but wouldn’t it be even better to avoid overpaying in the first place? A little tax planning can help ensure you’re not constantly waiting to get your money back from HMRC.
- Check Your Tax Code Regularly – If your tax code is incorrect, you could be paying too much tax without realising. Log into your Personal Tax Account to make sure it’s up to date—especially after job changes, pension withdrawals, or receiving multiple income sources.
- Update HMRC on Life Changes – Got a new job, started freelancing, or switched to part-time work? Changes in employment income affect how much tax you owe, so letting HMRC know early helps prevent overpayments or unexpected bills.
- Track Work Expenses & Deductions – If you’re eligible for tax relief on certain work expenses, claim them early so you don’t end up overpaying throughout the tax year.
Step 9 – Get Your Money Back Faster Next Time
Waiting on a tax refund is no fun, so why not make sure you get it faster next time? A little planning can save you from unnecessary delays and get your money back quicker.
- File Early to Skip the Rush – The later you file your self-assessment tax return, the longer you’ll wait for your refund. HMRC is flooded with last-minute submissions in January, so filing early in the tax year means you’re ahead of the queue.
- Keep Your Tax Details Up to Date – An incorrect tax code is one of the biggest reasons people overpay tax without realising. Check yours annually on your Personal Tax Account, especially if you’ve changed jobs, started freelancing, or switched to part-time work.
Need help? Check out HMRC’s official guidance on checking your tax code!
Final Thoughts
If you’ve overpaid tax, don’t leave your money with HMRC! Following these 9 simple steps ensures you claim your refund quickly and easily. Whether you’re fixing an old tax return, correcting a PAYE overpayment, or requesting a council tax refund, staying organised and tracking your claim will help you get your money back faster.
Need a stress-free way to claim your refund? Pie Tax makes the process easy—helping you track, manage, and maximise your refund without the hassle. Start your claim today! 🚀
