Last updated: 14 October 2026
How do you get back tax you have overpaid?
HMRC repays millions of pounds of overpaid tax every year, but most refunds only happen when someone claims. If you’ve paid too much income tax through PAYE, Self Assessment or on savings interest, you can usually claim it back for the current tax year and the 4 previous tax years. In October 2026, that means you can still claim back to 2022/23, as long as you claim by 5 April 2027. The headline figure of £38 million in this article’s original title referred to one past HMRC refund exercise. The rules below are the ones that apply now.
Common reasons people overpay
| Reason | Typical fix |
| Wrong tax code, e.g. an emergency code after starting a job | HMRC corrects the code and refunds through payroll, or after the year ends |
| Leaving a job part-way through the year and not working again | Claim with form P50, or wait for the end-of-year check |
| Taking a flexible pension withdrawal taxed on an emergency basis | Forms P55, P53Z or P50Z |
| Job expenses not claimed, e.g. uniform, professional fees | Claim online or on form P87 |
| Marriage Allowance not claimed | Backdated up to 4 years |
| Payments on account too high after income fell | Reduce them on your return or with form SA303 |
| Tax deducted from savings or PPI interest | Form R40 if you don’t file a return |
How HMRC refunds tax
- Through PAYE: if you’re still employed, HMRC usually adjusts your tax code and you get the refund in your pay.
- After the tax year ends: HMRC compares the tax deducted with what you owed and sends a P800 calculation. Refunds are paid by bank transfer through your personal tax account, or by cheque.
- Self Assessment: an overpayment shows on your return, and you can ask HMRC to repay it rather than leaving it on account.
Example
Gemma left her job in August 2026 to travel and earned £16,000 in the tax year. Her employer deducted tax as if she would earn the same all year. Because her total income is only a little over the £12,570 Personal Allowance, her actual liability is about £686. She had paid £1,600, so she can claim around £914 back with form P50, without waiting until after 5 April 2027.
Interest on refunds
HMRC adds repayment interest to overpaid Self Assessment tax from the date the tax was paid. The rate is the Bank of England base rate minus 1%, with a minimum of 0.5%. It’s taxable as savings income.
Watch out for scams
HMRC doesn’t contact people by text or email to say they’re owed a refund with a link to click. Real refunds are shown in your personal tax account or the HMRC app. Be wary of refund companies that take a large share of your refund for a claim you could make yourself free of charge.
Overpaid tax in a company
Companies can also overpay corporation tax or VAT. A company can claim back overpaid corporation tax within 4 years of the end of the accounting period, often by amending the CT600 within the amendment window.
Frequently asked questions
How long does a refund take?
Online claims are usually processed in a few weeks; postal claims take longer.
Can I claim for a tax year that’s more than 4 years old?
Generally not, unless HMRC made an official error.
Do I need an accountant to claim?
No, but advice helps where several years or sources of income are involved.
Will claiming a refund trigger an enquiry?
A correct claim shouldn’t, but keep evidence.
Related: overpaid tax for 2018/19, waiting for a company tax refund and recovering PAYE overpaid by payroll.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with claiming a tax refund. See our tax refund accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
