How do I know I’m due a tax rebate?

Being due a tax rebate means that for whatever reason, you paid more income tax than you were supposed to (HMRC makes mistakes too, surprise, surprise!). 

At the end of the tax year, you will receive a P8100 which lets you know if you’re due a tax rebate. The good news is that now HMRC has to give you back any overpaid tax.

If HMRC does not automatically refund your overpaid tax, you will have to claim it yourself by contacting HMRC – either way, nothing feels better than a bit of extra cash rolling in unexpectedly.

Find out when you are due a tax rebate and how to claim a refund below.

When am I due a tax rebate?

This will differ depending on whether you are full-time employed or self-employed.

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
• 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
• 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
• Your state benefits change
• You stopped working

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

• Full-time employed: check your tax code (here is how to read it and what those numbers and letters mean)
• 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?

Claiming a tax refund depends on your situation:

• If you’re a PAYE or pensioner: try calling HMRC first – they can change your tax code (be sure to have your National Insurance Number to hand when calling HMRC)
• If you’re self-employed: you’ll have to submit a Self Assessment tax return to get your rebate

Bare in mind that a tax rebate is different from tax relief.