Tax overpaid through PAYE
After the end of the tax year, HMRC performs a reconciliation. They gather all the information that they have received from all sources to work out how much tax you should have paid for a tax year and looking at how much tax you actually paid. HMRC will send out a P800 tax estimate or a basic assessment of PA302 if both estimates are not the same.
HMRC has started sending out P800 tax calculations and PA302 simple assessments for 2017/18. If you receive a calculation, it is important that you check it carefully. Or ask your tax adviser to do so. HMRC do make mistakes!
If the calculation shows that you are due a refund, you can claim this online via your personal tax account (see www.gov.uk/check-income-tax-last-year). When you are not seeking a refund within 45 days, however, HMRC will give you a cheque.
You can also claim a refund via your personal tax account. If you have paid too much tax and HMRC has not sent a P800 calculation or PA302 simple assessment. If you are unsure whether you have paid too much, you can also check what you have paid online at www.gov.uk/check-income-tax-last-year.
If you are within self-assessment (for example, if you are self-employed or have other sources of income also to your job) and you have overpaid tax, HMRC will generally process the tax repayment once you have submitted your return. An overpayment may arise. If your income is lower than the previous year and the payments on account exceed your liability for the year. If your income drops so that payments on account are not needed for the current year, a repayment may arise.
You can also trigger the repayment online via your personal tax account. By logging in and checking the tax position and asking that the overpayment repaid.
If the repayment is not received in a few weeks, you may wish to call HMRC to chase it up.