How A Tax Refund Works

Earnings outside of PAYE can vary considerably from one year to the next. If you find that you have overpaid when you come to complete your tax return, you’ll be entitled to a refund. Here, we…

5 Minute Read

Last Updated: 14th March 2022

Earnings outside of PAYE can vary considerably from one year to the next. If you find that you have overpaid when you come to complete your tax return, you’ll be entitled to a refund. Here, we take a look at how a tax refund works and what you should expect from the process.

What is a tax refund?

Quite simply, a tax refund is money owed to you from HMRC when you’ve paid too much tax. There are a few examples of why you might be due a tax refund, which include:

  • You filed and paid your Self Assessment tax return but made changes afterwards
  • You overpaid the amount of tax due to HMRC
  • You no longer need to complete a Self Assessment, but have made payments on account

 

How do I get the money back? 

When completing your Self Assessment tax return you need to ensure you complete page 6 of the main form (SA100) – boxes 4 – 14 – as this determines how your tax refund is paid to you.

Think you might be entitled to a tax refund for overpayments in previous years? Bear in mind there is a time limit of four years from the end of the tax year you have overpaid, so be sure to check back to avoid losing out.

 

How long does a HMRC tax refund take?

If you have made a claim for a tax refund, there are different waiting times depending on how you asked to be repaid.

  • UK bank account – 5 working days
  • Cheque – Up to 5 weeks (sometimes longer)

These timescales are subject to tax refund checks and assessments, so may take a little longer if you have complex financial affairs.

 

Tax refund scams

With the influx of emails into our inbox everyday, it’s sometimes difficult to spot the fake mail and scammers. As these emails become more sophisticated and appear to have official government email addresses and details, this misleading information can sometimes catch people out.

For the past few years, tax refunds have been used to target people into disclosing personal information. The saying goes ‘if it’s too good to be true, then it probably is’ rings true, especially if you are not expecting a refund from your Self Assessment tax return. HMRC will never send emails or texts regarding money owed to you, so always ignore or report messages that contain this information.

Yet to complete your Self Assessment tax return? It’s quick and easy using SimpleTax’s comprehensive tax return software. Try our 14-day trial and discover a simple way to report your earnings.

 

Source: https://www.gov.uk/claim-tax-refund/you-fill-in-a-self-assessment-tax-return

https://www.gov.uk/report-suspicious-emails-websites-phishing

 

 

Trusted by over 15,000 subscribers

You don't need to be an expert to complete your self assessment tax return.

Start your free trial

Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.

DOING YOUR TAX RETURN HAS NEVER BEEN SO EASY.

Start your Self Assessment tax return today for free.

Sign up Now

How much tax does a landlord need to pay? 10 key questions answered…

18 May 2023

The UK has more than 2.7m unincorporated landlords and each year they report to HMRC rental property income worth some £41bn. Unincorporated landlords are…
READ MORE >

How to claim a tax rebate when you’re a sole trader

04 May 2023

Even if it’s only a few quid, finding out that you’re in line for a tax rebate because you’ve paid too much tax is…
READ MORE >

21 expenses you can claim as a private residential landlord

02 May 2023

Being a landlord can be costly. There are so many things to buy and expenses to pay, while repairs and maintenance work can really…
READ MORE >

How GoSimpleTax Works

01.
Register

Simply register for free with your full name and email address.

02.
Select Your Income

Select the income you receive and follow the hints and tips for potential tax savings.

03.
Validate Your Information

Validate your personal information and submit directly to HMRC to get confirmation in just seconds.

ipad

Work Anywhere, With Any Device

Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour.

GoSimpleTax’s tax return software uses the information you upload in real time to calculate your income and expenditure, working out the tax you owe and sending you helpful notifications when there’s the possibility of a mistake.

Start your free trial

"The software is intuitive and proved very easy to navigate. I found the whole process refreshingly simple. I saved a lot of money too!"

Steve J.

Ordained Presbyter

"Easy to use and value for money. Everything you need to do your tax."

Gordon J.

Self Employed

"It fills in all the forms and sends them to the Inland Revenue. Not expensive either. Takes the stress out of doing your tax return online."

Ross G.

Team Rector

Start your free trial