“Being due a tax rebate” means that for some reason you paid more tax than you were supposed to. The good news is that now HMRC has to give it back to you. 

Sometimes they do it automatically, but most times you have to claim it yourself.

When am I due a tax rebate?

Full-time employed (PAYE):

• you start a new job, and you get an emergency tax code
• HMRC sends the wrong tax code to your employer
• your employer didn’t use the correct tax code
• you have more than one PAYE job
• your company benefits change: certain employee perks (company car, health insurance, etc.) are taxable and can change your tax code
• or if you had some expenses for work, for example washing your uniform or clothing, etc. You can claim these back.

Self-employed:

• when you make Payments on Account for the following year. Because when you make a Payment on Account HMRC estimates this year’s income based on what you earned last year, sometimes you might end up overpaying
• or if you’re a construction worker and have registered for CIS (Construction Industry Scheme): your contractor will deduct 20% tax from what you earn. Most of the time you’re due a £1,000-2,000 rebate.

Other less common situations:

• you can sometimes pay too much tax on savings interest
• you’re a pensioner with more than one pension
• or when your state benefits change.

How do I check if I’m due a tax rebate?

• if you’re full-time employed: check your tax code (here is how to read it and what those numbers and letters mean)
• if you’re a pensioner: same
• if you’re self-employed: try calling HMRC. If you’re a CIS worker, you can also use our CIS tax rebate calculator.

How do I claim it?

It depends on your situation, but:

• if you’re a PAYE or pensioner: try calling HMRC first – they can change your tax code
• if you’re self-employed: you’ll have to submit a Self Assessment tax return to get your rebate.