Changing jobs or taking a break from work can mean that you get charged the wrong amount of income tax. In this guide, we teach you what a tax rebate is, how much you might be owed, and how to claim that money back.

What is a tax rebate?

Understanding how tax rebates work and how to claim one can seem confusing, but taking the time to learn can help make sure you get back what you’re owed. A tax rebate is a refund of income tax you’ve already paid. If you’ve paid too much tax, you might be owed a rebate. 

At the end of each tax year, which runs between 6 April and 5 April, HM Revenue & Customs (HMRC) works out whether you paid the right amount of tax. HMRC usually issues tax rebates automatically, but you can claim one if you think you’ve overpaid tax.  

Am I due a tax rebate?

If you’ve paid too much tax, you could be owed a tax rebate. There are a few reasons why your tax might not have been calculated correctly. You might be due a tax rebate if you:

• were given the wrong tax code by HMRC or by your employer
• finished one job, started another, and were paid by both in the same month
• started to receive your pension before retiring
• received Employment and Support Allowance or Jobseeker’s Allowance.

If you’re employed, HMRC usually contacts you if you’re due a tax rebate. 

If you’re self-employed or have other income, you might be able to claim a tax rebate using a Self Assessment tax return. 

If you’ve recently lost your job or been made redundant, you might be able to claim back some of the tax you paid while you were working. Learn how to do this in the MoneyHelper guide to Claiming your rebate after losing your job.

How can I check if I’ve paid too much tax?

If you think you’ve paid too much tax, there are steps you can take to work out whether you’re owed money back. To check if you’ve paid too much tax:

• check your income tax for last year using your Government Gateway user ID and password at GOV.UK then
• use the tax checker on GOV.UK

When you know how much tax you paid, you can work out whether you might be owed a refund. 

What can I get a tax rebate on?

You can get a tax rebate if you’ve overpaid tax or haven’t claimed tax refunds during the financial year. This can include any money you’ve earned or spent, such as: 

• pay from your current or previous job
• work-related spending, for example, if you’ve paid for a uniform with your own money
• business expenses if you’re self-employed, for example, office costs
• personal pension contributions
• redundancy payments
• charity donations.

Claiming your tax rebate

If you’re employed or receive a pension and have paid too much tax through PAYE, HMRC will send you a tax calculation letter (P800) telling you how to claim your rebate. 

You can:

• claim it online via GOV.UK or 
• wait for a cheque. 

You can check and claim a tax refund using the HMRC app. HMRC doesn’t always calculate your taxes automatically.  If you’re self-employed or have other income, you might need to fill in a Self Assessment tax return to let HMRC know how much tax you paid. 

If you’re filing for the first time or didn’t send a tax return last year, you need to register for Self Assessment at GOV.UK. You must fill in a Self Assessment letter if you: 

• earned more than £1,000 a year from self-employment
• were part of a business partnership
• had taxable income over £150,000
• paid Capital Gains Tax
• paid High Income Child Benefit Charge.

You might also need to fill in a Self Assessment for any money from savings or investments, income from renting out property, tips and commissions, and foreign income. Do this between the start of the next tax year (6 April) and the end of January (31), or you might be charged interest or a penalty.

Before starting your Self Assessment tax return, make sure you have everything you need, including payslips and bank statements, so you get the amount you’re owed.  You must provide accurate and complete information on time. You may pay penalties for inaccurate or late claims, even if it’s an accident. 

A Self Assessment tax return may seem daunting, but it can be straightforward if you follow the necessary steps. 

Avoid using tax refund companies to help with your tax returns. They can charge hidden fees and may encourage you to claim expenses for which you’re not eligible. 

When will I get a tax rebate? 

Tax rebates are calculated at the end of the financial year, which always runs between 6 April and 5 April of the next year.  When HMRC has worked out who is owed a tax rebate, they send tax calculation letters between June and the end of November.

How long it takes to get your refund depends on how you claim it. 

• If you claim your refund online, you get paid within 5 working days.
• If you don’t claim your refund online within 21 days, HMRC sends you a cheque, which can take up to 6 weeks to arrive.

The time it takes to get a tax rebate after sending off your Self Assessment tax return can vary depending on the nature of your case.  If you’ve overpaid tax for longer than a year, you still get a single cheque covering the total amount.

You can check how long your claim should take using the progress tracker in your GOV.UK online account. You can also check when you can expect a reply from HMRC

How much will I get back from a tax rebate?

How much tax you get back depends on a few factors, including:

• your earnings since the start of the tax year
• how much tax you paid on those earnings and any other income
• if you work from home (and have paid for home office equipment)
• if you have paid for any work-related expenses. 

There’s a simple tax checker tool at HM Revenue & Customs (HMRC). It should only take a few minutes to estimate how much tax you can claim back. Before using the tax checker, make sure you have everything you need, including pay slips and bank statements.