How Do I Check If I Am Owed a Tax Refund

At Towerstone Accountants we provide specialist personal tax services, for self employed, and individuals across the UK. This article has been written to explain How do I check if I am owed a tax refund, in clear practical terms, so you understand how personal tax and Self Assessment rules apply in real situations. Our aim is to help you stay compliant, avoid costly mistakes, and make confident tax decisions.

Many people assume that if HMRC owes them money it will automatically be paid back. In reality that is not always the case. I regularly speak to individuals who have overpaid tax and had no idea until years later, often because their circumstances changed or something was reported incorrectly. In my experience tax refunds are far more common than people realise, but they are also very easy to miss if you do not know what to look for.

In this article I want to explain how you can check whether you are owed a tax refund in the UK, what situations most commonly lead to overpaid tax, how to check your position depending on your employment status, and what to do if you believe HMRC has made a mistake. I will also explain how refunds are paid and how far back you can go. Everything here is based on current HMRC processes and what I deal with regularly in practice.

By the end you should be able to confidently check your own position and know when it is worth taking action.

What a tax refund actually means

A tax refund simply means that you have paid more tax than you were legally required to for a particular tax year. This can happen for many reasons, and it does not mean anyone has done anything wrong. PAYE in particular is an estimate based system, so overpayments are built into it by design.

Refunds can relate to:.

• Income tax

• National Insurance in limited cases

• Overpaid PAYE through employment

• Overpaid tax through Self Assessment

• Emergency tax codes

• Incorrect tax codes

HMRC will sometimes identify these overpayments automatically, but not always. That is why checking matters.

Common reasons people are owed a tax refund

From experience there are a few situations where refunds come up again and again.

One of the most common is changing jobs during the tax year. If you move roles and your tax code does not follow you correctly, you may be taxed as if you have two jobs when you do not.

Another common cause is being placed on an emergency tax code. This often happens when you start a new job, return to work after a break, or start drawing a pension. Emergency tax usually means you pay more tax than necessary in the short term.

Overtime bonuses or irregular pay can also cause overpayments, particularly if income spikes for part of the year and then drops back.

Self employed people often overpay tax through payments on account, especially if income falls or a business slows down.

I also regularly see refunds where expenses were not claimed, pension contributions were not factored in properly, or benefits in kind were reported incorrectly.

How to check if you are owed a tax refund if you are employed

If you are employed and pay tax through PAYE, the easiest place to start is your Personal Tax Account.

You can access this through your Government Gateway login on GOV.UK. Once logged in you can see:.

• Your tax code

• Your reported income

• Tax paid so far

• Whether HMRC thinks you have overpaid or underpaid

If HMRC believes you are due a refund, it will usually show here and may prompt you to claim it.

You should also check your P60 at the end of each tax year. This shows your total pay and total tax deducted. Comparing this against what you would expect to pay based on your income and allowances can highlight issues.

If you left a job during the year, your P45 is also important. Errors often happen when information from a P45 is not processed correctly.

How to check if you are owed a tax refund through Self Assessment

If you file a Self Assessment tax return, HMRC will calculate whether you have overpaid once the return is submitted and processed.

After filing, you should check your Self Assessment statement. This will show:.

• Tax due

• Tax paid

• Any overpayment or balance available

If you are owed money, the account will show a credit. You usually need to actively request the refund unless HMRC automatically offsets it against future tax.

From experience many people miss this step. They assume the refund will be issued automatically, but HMRC often waits for you to confirm how you want it paid.

You can request the refund through your online Self Assessment account, or in some cases by contacting HMRC directly.

Payments on account and unexpected refunds

Payments on account are a major source of refunds for self employed people.

If your income drops from one year to the next, your payments on account may exceed your actual tax liability. This creates a credit on your account.

HMRC does not always refund this automatically. It may sit on your account until you claim it or until it is used against a future bill.

In my experience this is one of the most commonly overlooked refunds, especially for people whose income fluctuates.

Checking old tax years and backdated refunds

You can usually claim a tax refund going back up to four tax years. This applies to PAYE refunds and certain expense claims.

For example, at the time of writing, you can still claim refunds going back to the 2020–21 tax year.

If you think you may have overpaid tax in previous years, it is worth checking old P60s, P45s, and Self Assessment statements if you have them.

I often see people uncover refunds from several years ago simply because no one ever checked.

How HMRC pays tax refunds

Once a refund is agreed, HMRC will usually pay it:.

• Directly into your bank account

• By cheque in some cases

For online claims, bank transfer is the fastest option. Refunds are typically processed within a few days to a few weeks, depending on the situation.

If you have other outstanding tax debts, HMRC may offset the refund against those amounts instead of paying it out.

Warning about tax refund scams

It is worth mentioning that tax refund scams are very common. HMRC will never contact you by text or email asking for personal or banking details out of the blue.

If you receive a message claiming you are owed a refund and asking you to click a link, treat it with caution. Always access your tax information directly through GOV.UK.

When to get help checking a refund

If your situation is straightforward, you can usually check everything yourself online. However there are times when getting help makes sense.

From experience I recommend seeking advice if:.

• You have multiple income sources

• You are self employed and unsure about payments on account

• You have received confusing letters from HMRC

• You believe HMRC has made an error

• You are checking several years at once

A quick review can often uncover overpayments that would otherwise remain unnoticed.

Key points to takeaway

Tax refunds are far more common than most people expect. PAYE is an estimate, circumstances change, and mistakes happen. In my experience the biggest reason refunds go unclaimed is not complexity but assumption. People assume HMRC will automatically fix everything.

Taking the time to check your position, especially after job changes or income shifts, can be well worth it. If you are owed money, it is your money, and there is no downside to making sure you receive it.

If you are unsure, checking is always better than wondering.

You may also find our guidance on Can HMRC take money directly from my account, and How do accountants help people who have missed previous returns, helpful when reviewing related personal tax questions. For a broader overview of Self Assessment deadlines, reporting, and obligations, you can visit our self assessment guidance hub.