Tax Refunds & Overpaid Tax

What happens if you pay too much tax? 

Sometimes too much Income Tax is deducted from your pay. 

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This can happen for several reasons, such as: 

• starting or leaving a job part-way through the tax year; 

• being put on the wrong tax code; 

• changing jobs; 

• having more than one job; 

• HMRC having incorrect or outdated income information. 

 

HMRC allows you to check your Income Tax for the current tax year through your Personal Tax Account or the HMRC app. You can see your tax code, Personal Allowance, estimated income and expected tax. (GOV.UK) 

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What happens after the tax year? 

HMRC normally calculates PAYE taxpayers' Income Tax after the tax year. If you have paid too much or too little, you may receive a P800 tax calculation explaining the result. 

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If you are due a refund, HMRC may allow you to claim it online. (GOV.UK) 

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Example 

Suppose you work only during the summer but Income Tax is deducted as though you will earn that amount throughout the whole year. 

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If your total annual income ends up being lower than expected, you may have paid too much Income Tax. 

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Key takeaway 

If your deductions look wrong, do not ignore them. Check your tax code, income information and HMRC account — you may be entitled to a refund. 

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