Getting a tax refund – What You Need To Know

If you are an employee then HMRC checks, or should check, each year whether you have paid the correct amount of tax.

If you have underpaid or overpaid tax then they will issue you with a form P800, and these have now started to be issued by the tax office. However, there is a change this year in what happens next if you have overpaid tax.

In previous years a cheque has been issued at the same time as, or very shortly after, the issue of the P800. This year, however, the repayment will be made in one of four ways:

1. If you have authorised an agent to receive your repayment on your behalf then they will need to request the repayment.

2. Otherwise, you will be able to go onto your “Personal Tax Account” and from 1st August check to see whether your tax position has been reconciled. If it has, and if you are owed a repayment, then you will be able to enter details of your bank account and request a direct transfer of the overpayment into your bank.

3. Alternatively, you will be able to contact the tax office by telephone, on the number that they have conveniently failed to provide on the P800, and request that they send you a cheque for the overpayment.

4. If you do none of the above then they should issue you with a cheque for the overpayment 45 days after the issue of the P800.

HMRC say that they hope to launch a method of paying any underpaid tax through your Personal Tax Account later in the year.