What You need to Know...
Learn how to claim a tax refund for overpaid taxes in 2025.
This step-by-step guide covers eligibility, required documents, filing methods, and tips for maximising your refund.
Every year, millions of taxpayers unknowingly leave money on the table!
If you’ve overpaid taxes, you may be entitled to a refund, but how do you claim it?
In this guide, we’ll walk you through the process of determining eligibility, filing a refund claim, and ensuring you get the maximum amount back.
Whether you're a salaried employee, self-employed, or an investor, this guide will help you navigate tax refunds with ease.
Let's dive in!
Who Can Claim a Tax Refund?
Overpaid income tax? You might be due a refund!
Many taxpayers pay too much each tax year due to wrong tax codes, job changes, or self-assessment errors. Even council tax refunds can apply if your circumstances changed.
Who’s Eligible?
If you’re on PAYE, check your HMRC account, as wrong tax codes are a common issue. Self-employed? Review your self-assessment for overpayments.
Even students, retirees, or those with multiple jobs might have paid too much.
What Affects Overpayments?
Tax deductions, credits, and council tax adjustments can mean money back. Not sure where to start? Our free Pie Tax app helps check for overpaid tax and file refund claims, and it's quick and hassle-free!
How to Check if You’ve Overpaid Taxes
Ever wondered if you're owed a tax refund? Many people overpay without realising it! The good news is, checking is simple, and you could be due money back.
Review Your Payslip & Tax Return
Start with your payslip. Look at your tax code: if it’s wrong, you might have paid too much income tax. For self-employed people, reviewing your self-assessment tax return can highlight overpayments from previous years.
Use Online Tax Calculators
HMRC offers refund estimation tools, and our Pie Tax app makes it even easier. Just enter your details and see if you’ve overpaid in the current tax year, or before!
Check with Tax Authorities
For official confirmation, log into your HMRC account or contact local authorities. If you're owed a refund, you’ll need to submit a claim form, and if that sounds like a hassle, our app can help!
Steps to Claim a Tax Refund
Think you’ve overpaid on your income tax or council tax? Good news is, you can claim it back! Here’s how to do it quickly and easily.
Step 1: Gather Your Documents
You’ll need proof of what you’ve paid. For PAYE employees, this means your P60 or P45. If you’re self-employed, check your self-assessment tax return. For council tax refunds, grab your council tax account reference.
Step 2: Verify Your Payments
Compare your tax deductions with what you actually owe. Look at payslips, tax returns, and bank statements. Mistakes happen, and wrong tax codes or missing deductions can mean an overpayment.
Step 3: Choose a Filing Method
You can claim directly through HMRC online, fill out a paper form, or use a tax refund service. Not sure where to start? Our Pie Tax app simplifies the process—no stress, just refunds.
Step 4: Submit & Track Your Refund
Once your claim is submitted, HMRC will process it, usually within a few weeks. Keep an eye on your HMRC account for updates. If you’re owed money, you’ll get a payment straight into your account. Easy, right?
How Long Does a Tax Refund Take?
Waiting for a tax refund? Processing times vary, so patience is key.
PAYE refunds usually take 8-12 weeks, while self-assessment refunds can be done in four weeks if filed online. Council tax refunds are handled by local authorities and typically take around 30 days.
Delays happen due to errors, missing documents, or incorrect tax details. If HMRC or your council needs to review information, expect longer wait times, especially for previous years' claims.
To check your status, log into HMRC online for income tax refunds or contact your council tax department with your account reference. If it’s taking too long, following up can help speed things up!
Common Mistakes That Delay Tax Refunds
If you're expecting a tax refund, the last thing you want is a delay. But small mistakes can slow things down, sometimes by weeks or even months. Eek!
One of the biggest issues is inaccurate personal details. A wrong address, bank account number, or council tax account reference can cause your refund to get stuck in processing. Always double-check your details before submitting.
Another common mistake is missing or incorrect documents. HMRC needs proof of income, tax payments, and deductions, so ensure your P60, self-assessment records, and council tax forms are correct. If anything is missing, your claim could be put on hold.
Claiming ineligible deductions is another issue. If you try to claim for something that doesn’t qualify, like expenses without receipts, HMRC may need to review information provided, causing delays.
Finally, failing to submit before the deadline can push your claim to the back of the queue. If you're claiming for previous years, make sure you’re within the allowed timeframe. A quick review before filing can save you a long wait for your refund!
Maximising Your Tax Refund: Expert Tips
Many people miss out on extra cash simply because they don’t know what they can claim. Here’s how to get the most from your tax refund.
- Claim Tax Credits & Deductions – Expenses like uniform costs, home office bills, and travel could reduce your income tax. If you’ve moved or your circumstances changed, check for a council tax refund.
- Adjust Your Tax Withholdings – If too much is deducted from your pay, you’re giving HMRC an interest-free loan. Check your tax code and review deductions to avoid overpaying.
- Seek Expert Help for Complex Cases – If you have multiple income sources or need to claim for previous years, professional advice can help maximise your refund while ensuring compliance.
Your refund isn’t a bonus, it’s your money. Make sure you claim what’s yours!
Special Cases: How to Claim a Tax Refund for...
Not everyone’s tax situation is straightforward. If you fall into one of these categories, here’s how you can claim a tax refund if you’ve overpaid.
- Self-Employed & Freelancers – If you’ve paid too much income tax through self-assessment, check for overpayments on expenses, business costs, and National Insurance contributions. Amend your tax return or request a refund via HMRC.
- Expats & International Taxpayers – If you’ve worked in the UK but now live abroad, you might be due a refund on PAYE tax or self-assessment payments. Use form R43 or P85 to claim if you’ve left the country.
- Retirees & Pensioners – Overpaid on your pension income or received a lump sum with excess tax? HMRC may have deducted too much, so check your tax code and submit a claim if needed.
- Students & Part-Time Workers – If you earned under the personal allowance but had tax deducted from your pay, you can claim it back using form P50 or P60. Council tax refunds may also apply if you were wrongly charged.
Each case is different, so always check with HMRC or your local tax office to make sure you get back every penny owed!
What to Do if Your Tax Refund Is Denied
A denied tax refund doesn’t always mean you’re not owed money. Here’s what to do next.
Check for Errors
Common reasons for rejection include:
- Incorrect details – Wrong tax code, address, or council tax account reference.
- Missing documents – HMRC may need proof of your income or deductions.
- Ineligible claim – Some refunds or tax credits have strict requirements.
Fix & Appeal
- Log into your HMRC account to review your refund assessment.
- Submit missing documents or correct errors in your self-assessment.
- For council tax refunds, contact your local authority.
Get Help from HMRC
If unsure, visit www.gov.uk/claim-tax-refund or contact HMRC directly. A simple fix might be all you need to get your refund approved!
Final Thoughts
Claiming a tax refund might seem like a hassle, but if you’ve overpaid, it’s your money, so don’t leave it sitting with HMRC!
Whether it’s from a wrong tax code, self-assessment overpayment, or council tax refund, a little effort can mean extra cash in your pocket.
To check what you're owed and make claiming easier, try Pie Tax! Our free app simplifies the process so you can get your refund without the stress.
No paperwork, no guesswork, just money back where it belongs!
