In the UK, the tax year starts on April 6th and ends on April 5th the following calendar year.
You may have paid more tax in than was required.
You can also claim your over paid tax if you are leaving or have left the UK.
See below an example of tax calculation.
The Personal allowance – tax free annual earnings for 2020/2021 is £12,570 and above this earnings you need to pay 20% tax up to £50,270.
Over-Payment of taxes may occur:
- If you start a new job and your tax code was not adjusted during the tax year
- If you changed your job and did not give your new employer a P45.
- if you work less than 52 weeks over the tax year
- If you have multiple jobs at one time.
Starting a new job
If you begin a new job, you might end up paying more tax than you normally would within the first month of employment. This is usually adjusted within 28 days. The tax should be refunded in your next wages.
If the correction does not occur you will need to contact the tax office online: HMRC, by phone on 0300 200 3300; 0135 535 9022 or write to them: Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS.
How to get a tax refund in England
If you have paid more tax than you should have, you will receive a P800 notification from the tax office by 31st October. This will inform you how much tax is to be paid back to you and the way you can receive it. For upcoming tax years, you will have to wait till you get your P800 tax notification in order to get your tax refund.
You will need
- National Insurance number
- Your P60 if available. You receive a P60 from your employer after the end of each tax year by 31st May. This is a summary of your annual earnings and tax deductions. If you work at one time for more than one employer, you will receive P60 from each separately.
- P45 is an earnings and tax summary issued by your employer, when you leave the job.
If you’ve lost P45 and P60 statements, see our Lost P45 P60 article.
How do you claim back owed tax when leaving the UK?
If you’re leaving or have left the United Kingdom, you will need to tell the tax office – HMRC. You can claim a tax refund online here HMRC leaving UK or by post. You will have to fill in P85 form and send it to HMRC. It must contain parts 2 and 3 of your P45 form.
You need to have a UK bank account or nominate a friend or a relative’s UK account to obtain any refund.
For further free and official advice please contact Citizen Advice office.
How much tax is due back?
First find your yearly income on your P60 statement under “Total for year-pay” segment or on your P45 statement at the “Total pay to date” section.
- Deduct the tax free personal allowance from the annual income. Tax free Personal allowances for Tax year 2019- 2020 was £12 500.
- Multiply the specified amount by 20 and divide by 100 to work out the 20% = the taxation you should have paid, provided your income did not exceed the 20% tax threshold.
- Compare it with the total amount of tax you’ve really paid in, which can be found on the P60 statement “Total annually -Tax deducted” segment or on the P45 statement “Total tax to date” section.
- This how much tax you are owed or you owe.