How to Claim a Tax Rebate in the UK: HMRC Tax Refund Guide

When Are You Owed a Tax Rebate from HMRC?

HMRC collects income tax on a best-estimate basis throughout the year — via PAYE for employees and via payments on account for the self-employed. When the actual tax due at year-end turns out to be less than what was collected, you are owed a refund.

The most common reasons UK taxpayers are owed a rebate:

• Changing jobs — when you leave a job, your employer may use an emergency tax code for a period, which deducts too much tax. HMRC often corrects this at year end, but many people never check.
• Leaving employment mid-year — your employer assumed you would earn a full year's salary. If you stopped working partway through the year, you used less of your personal allowance than budgeted, so you overpaid.
• Multiple jobs — only one job can use your personal allowance. If you had a second job with a BR (basic rate) tax code, all income from that job was taxed at 20% with no allowance applied — even if your total income was below the 40% threshold.
• Unclaimed work expenses — employees can claim for costs incurred wholly in the performance of their duties that their employer did not reimburse. Many people never claim these.
• Working from home — HMRC allows employees to claim for the additional costs of working from home, including a flat rate of £6/week without any receipts.
• Self-employment overpayment — if your payments on account exceeded your actual tax liability for the year, the surplus is refunded when you file your Self Assessment return.
• Marriage allowance — if one spouse earns below the personal allowance and the other pays income tax, the lower earner can transfer up to £1,260 of their allowance — saving up to £252 per year.

How PAYE Employees Claim a Tax Rebate

If you are employed and pay tax through PAYE, HMRC may send you a P800 tax calculation after the end of the tax year (usually between June and October). This shows whether you overpaid or underpaid. If HMRC calculates you are owed a refund, you will receive it automatically — either by bank transfer if you have registered your bank details with your personal tax account, or by cheque.

If you do not receive a P800 but believe you have overpaid, you have several options:

• Check your Personal Tax Account at gov.uk — log in with your Government Gateway credentials and view your tax record for previous years
• Use the P87 form to claim for employment expenses under £2,500 — available at gov.uk/claim-tax-relief-for-job-expenses. HMRC processes these within 8–12 weeks.
• Register for Self Assessment if your expenses exceed £2,500 or if you have multiple types of claims — file a return, HMRC calculates the rebate automatically
• Call HMRC on 0300 200 3300 (have your National Insurance number and tax reference ready)

How Self-Employed People Claim a Tax Rebate

If you are self-employed or a sole trader, your tax rebate comes through your Self Assessment tax return. When you file your return, HMRC calculates the difference between what you owe and what you have already paid (via payments on account). If you paid more than you owe, the surplus is refunded.

This happens automatically when you file — you do not need to make a separate claim. The refund goes to the bank account you have registered with your personal tax account, or HMRC may issue a cheque.

Common scenarios where self-employed people get a rebate:

• Your income fell compared to the previous year, so your payments on account were calculated on a higher income than you actually earned
• You had significant allowable expenses that reduced your taxable profit below what was estimated
• You claimed the Annual Investment Allowance (AIA) for equipment purchases, reducing your profit materially
• You made a loss in the year, which can be carried back against previous years' profits

You can also amend a previous year's Self Assessment return to claim expenses you forgot to include. You have 12 months from the original filing deadline to amend a return. For older years (up to 4 years back), you can use HMRC's formal overpayment relief claim process.

Work Expenses You Can Claim to Create a Rebate

Employees can claim tax relief on costs that are incurred wholly, exclusively, and necessarily in the performance of their job, and that their employer has not reimbursed. The following table shows the most commonly claimed categories:

If you are a higher-rate (40%) taxpayer, the tax saving on every £1 of claimed expense is doubled compared to a basic-rate (20%) taxpayer. A sole trader or self-employed person with high allowable expenses should ensure all legitimate costs are included in their tax preparation to avoid overpaying.

How Long Does a Tax Rebate Take?

Processing times vary depending on how you claim:

HMRC is at its busiest between January and April (peak Self Assessment season) and June to October (P800 calculations). Expect delays of two to four weeks above the stated processing times during these periods. Submitting an online claim is consistently faster than paper.

If more than 12 weeks have passed and you have not received your refund, use your Personal Tax Account to check the status or call HMRC on 0300 200 3300.

How Far Back Can You Claim?

You can claim a tax rebate going back four tax years from the end of the current tax year. In 2025/26, the earliest year you can claim for is 2021/22.

• Employment expense claims (P87): go back up to 4 years
• Self Assessment amendments: up to 12 months from the original filing deadline for online amendments; up to 4 years via formal overpayment relief claim
• Marriage allowance: can be backdated up to 4 years
• Professional subscription refunds: up to 4 years, per HMRC's claim form

If you have never checked whether you were owed tax in previous years, it is worth reviewing your payslips, P60s, and employment records for the past four years. Sharma Jyoti and Co can review your tax history and identify potential claims — contact us via the contact page for a no-obligation assessment.

Frequently Asked Questions