Wednesday, 14 May 2014

How to Apply for a Tax Refund from HMRC

Millions of people paid too much tax in the last tax year which finished on April 5th.
Are you one of those people who are now entitled to a tax refund?
Read on and find out!

1)  Find your final Tax Code for 2014 / 2015
If you haven't had it already, your P60 (the end of year statement) detailing your earnings in the job you were in on 5th April should be handed to you soon (and legally you have to have it by 31st May).  
If you had more than 1 job on 5th April you should receive a P60 from each job as long as you earned more than £109 per week or £473 a month at least for one pay period.

On your P60 you will find your final tax code.  If you don't have your P60, dig out your final payslip from the last tax year or your P45 from the last job you had.  Is the tax code 944L with nothing after it?  In that case it is unlikely you are due anything back (but read on as it might be worth checking just in case!).

If the tax code has an X or a "month 1" after it, it is possible you may be due a tax refund.

2)  Is your code different to 944L and do you know why?  
Perhaps you had 2 or more jobs and your tax allowance was split.  Perhaps you paid Basic Rate (20%) tax at one job and had all of your taxable allowance at another.
Perhaps you received taxable benefits in your job (health care insurance etc).
Perhaps you receive a pension as well as income from your job.

If it is different and you don't know why, call HMRC on 0300 200 3300 and ask them to explain.

3)  Check the Figures
It's always worth checking the figures on your P60, even if your tax code seems to be correct.
HMRC have a useful tax calculator on their website.   

4)   Contact HMRC
If you think a refund is due, hopefully HMRC are already aware too, but it's definitely worth letting them know that you know as they are not fond of sending out cheques!
Give them a call on 
0300 200 3300 and tell them that you think you have overpaid tax for the last tax year.

Alternatively, you can write to them instead and enclose a copy of your P60, final payslip or P45.  
Send the letter to: 
HM Revenue & Customs
Pay as You Earn
PO Box 1970
L75 1WX

If you would like a FREE draft letter to send, please send an email to and I will send you one.

It is up to you to keep HMRC informed if you change your name or address.  
If you need to update your information visit: 

©          May 2014