How Do I Claim Back Tax I Have Overpaid through PAYE on Wages?

How Do I Claim Back Tax I Have Overpaid through PAYE on Wages?

Overpaid PAYE Tax? Read our comprehensive guide on how to claim a PAYE Tax Refund

There are many reasons that you could overpay tax through PAYE, such as being on the wrong tax code or when switching employers within a tax year. But because of the complexity of the UK tax system, knowing if you are eligible for a tax back is not as straightforward.

How to find out if you’re on emergency tax

This underlines the importance of hiring a tax professional to help clear any confusion you might have. Sure, tax payments may be automatically deducted through PAYE, but what are the odds that there are a few discrepancies here and there?

There is also a possibility that you may not need to claim a tax back at all.

What is a P800 tax calculation?

You will receive a P800 tax calculation from HMRC that will tell you whether you have not paid the right amount of tax or you are due a repayment of your tax. So the moment you get one, you should review it carefully.

How HMRC calculates your tax payment is based on the details that your employer provides the tax agency. They are responsible for providing HMRC the details of the income and benefits in kind you received and the tax you’ve paid during the tax year. But because the taxman may not have all the right information to calculate your tax correctly, you should check your P800 carefully. It may say you owe the tax agency money when that should not be the case.

If you are due a tax repayment, your P800 will also tell you whether you can claim your refund online or HMRC will send you a cheque.

Didn’t receive a P800? If you think you overpaid tax but didn’t get the tax calculation, you can use your personal tax account to claim a refund online.

In the event that your tax payments fall short of the expected amount, HMRC will provide you the necessary information, including how they intend to collect the remaining amount or how you can repay them. More often than not, the agency will collect through your tax code.

How do I claim a tax refund for the current tax year?

If you think you overpaid tax because of an incorrect PAYE code or some other reason, you should inform HMRC before the tax year ends. You can do this online or by telephone. You can find the agency’s phone number on the GOV.UK website.

Before you make that call, be sure to have on hand your personal details, details of each employer or employers if you have several, and estimates of your earnings for the current tax year.

Your personal details should include your National Insurance number, not just your name, date of birth, and address.

As for employer details, you’ll need the reference number of the PAYE scheme used. This should be indicated on your payslip. If not, ask your employer for it.

Also, in providing estimates for your income, they should be based on each source, if there is more than one. When calling HMRC, make sure to get the name of the adviser you spoke to for future reference. You should also take note of the date and time of the call and the exchange between you and the adviser.

Expect HMRC to ask for additional paperwork and be sure to supply them before the end of the tax year.

A new tax code

It may be necessary for HMRC to provide you with a new tax code once your claim is processed. Your refund will then be added to your earnings automatically through your payroll.

With a new tax code, you can expect tax deductions to be lower and your tax refund to be paid through PAYE.

In case you have already received your final pay for the current tax year and repayment is due, you can either wait for the P800 to be calculated and processed or claim a tax back directly from HMRC.

How do I get my emergency tax back?

If you are on an emergency tax code within the current tax year, you will need to work out your tax payments to determine if you overpaid it or not. You can find information online, call HMRC, or refer to a tax professional. Among the three, the last option is much more accessible and ensures a smooth processing, should you hire their services.

What is emergency tax?

How do I claim a refund if I have stopped working part way through the tax year?

Use the form P50 to claim an in-year tax repayment. This is applicable if you stopped working and don’t intend to go back to work within a month or claim a state benefit, leaving you without a source of taxable income.

Complete the form online using the Government Gateway on GOV.UK.

In the event that the details you provided on your form P50 are different from the payroll records that HMRC have, you may need to send parts 2 and 3 of your P45, a form your employer provides at the end of your employment.

How do I claim a refund after the end of the tax year and for previous tax years?

Even if the tax year has passed, you can still claim a refund. Ideally, you should hire a tax agency to ensure you get maximum compensation for up to 5 years of unclaimed overpaid tax. But you do have an option to process your claim online or write a letter to HMRC.

Unlike any letter you write, however, writing one for HMRC requires pertinent information, such as your employment history, and copies of certain documents. You also need to state a reason why you are due a repayment.

It is highly recommended that you seek professional advice from a tax agency so your claim for a tax refund will be approved by

the tax agency. The same agency can do the hard and time-consuming work on your behalf.

This way, you can go about your business or job with the knowledge that your tax refund claim is being taken care of. Got any queries about tax or tax rebates? Email us at 

Claim a PAYE tax refund

Check if you’re owed any tax back  

Apply for a Student Tax Refund


Photo by Brooke Cagle on Unsplash

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