London residents file taxes differently depending on citizenship and income source

If you live in London and earned income there, you file through HM Revenue & Customs (HMRC), the UK tax authority. If you're a US citizen or green card holder living in London, you file with the Internal Revenue Service (IRS) as well, because the US taxes citizens on worldwide income regardless of where they live. The refund process, timeline, and where your money comes from depend entirely on which country's tax system you're dealing with.

A UK tax refund comes from HMRC and typically arrives within 4 to 8 weeks of your claim. A US tax refund comes from the IRS and takes 21 days to several months depending on how you file and whether the return needs review. The two systems don't talk to each other, so you may be waiting on refunds from both at the same time.

Key Takeaways

  • UK residents file through HMRC and receive refunds within 4 to 8 weeks; US citizens in London also file with the IRS and may wait 21 days to several months.
  • HMRC refunds arrive by bank transfer to the account you provided on your Self Assessment return or tax code notice.
  • IRS refunds to a UK bank account take longer than refunds to a US address, and some UK banks may reject the transfer.
  • You can track a UK refund through your HMRC online account; you can track a US refund through the IRS website using your Social Security number and filing status.
  • If you've lived in London for part of the tax year, you may owe tax to both countries and receive refunds from neither.

How UK tax refunds work through HMRC

In the UK, you claim a refund by filing a Self Assessment tax return through HMRC's online portal. You'll need your Unique Taxpayer Reference (UTR) number, which HMRC sends when you register as self-employed or when they issue it to you. The return shows your income, deductions, and tax paid. If you've overpaid, HMRC calculates the refund automatically.

HMRC sends the refund by bank transfer to the account details you provide in your return. The transfer usually takes 4 to 8 weeks from the date HMRC processes your return, though it can take longer if HMRC needs to review your figures or if you've claimed certain reliefs. You can check the status of your refund by logging into your HMRC online account and viewing your tax year summary.

If you're employed in the UK and your employer has taken too much tax through PAYE (Pay As You Earn), you can also claim a refund without filing a full Self Assessment return. Contact HMRC directly with your P45 or P60 payslip, and they'll process a smaller refund within a similar timeframe.

How US tax refunds work for Americans in London

US citizens and green card holders must file a Form 1040 with the IRS even if they live abroad. You can claim the Foreign Earned Income Exclusion, which lets you exclude a portion of your UK earnings from US tax (the amount changes yearly; for 2024 it was around $120,000). Even with this exclusion, you still file the return to claim it.

You can file by mail or electronically through an IRS-approved e-file provider. Electronic filing is faster: the IRS typically issues refunds within 21 days of accepting your return. Paper returns take 4 to 6 weeks to process, and refunds arrive 2 to 3 weeks after that. If the IRS needs to review your return — for example, if you claimed the Foreign Earned Income Exclusion for the first time — the timeline extends to several months.

The IRS will deposit your refund to a UK bank account if you provide the account details on your return. However, some UK banks reject incoming transfers from the IRS because the routing information doesn't match their systems. If this happens, the IRS holds the refund and sends you a notice. You can then request a paper check, which takes an additional 4 to 6 weeks to arrive in London.

Tracking your refund status in both systems

To track a UK refund, log into your HMRC online account using your Government Gateway credentials. Navigate to your tax year summary and look for a refund status line. It will show whether HMRC is processing your return, whether a refund has been approved, or whether it's been sent. If the status says "refund sent," check your bank account within 5 to 10 business days.

To track a US refund, visit the IRS "Where's My Refund?" tool at irs.gov. You'll need your Social Security number, filing status, and the exact refund amount from your return. The tool updates once per day, usually overnight. It will tell you whether the IRS has received your return, whether it's approved, and the expected deposit date. If you filed by mail, allow 4 to 6 weeks before checking the tool.

If either refund doesn't arrive within the stated timeframe, contact the relevant authority. HMRC can be reached through your online account or by phone; the IRS has a phone line for refund inquiries, though wait times are often long during tax season.

What happens if you moved to London partway through the tax year

If you moved to London during a tax year, your UK tax liability depends on your residency status. Non-residents pay UK tax only on UK-sourced income (salary, rental income from a UK property). Residents pay UK tax on worldwide income. The year you move, HMRC may split your tax code or ask you to file a Self Assessment return to sort out what you owe.

For US purposes, if you're a US citizen, you owe US tax on worldwide income for the entire year, regardless of when you moved. However, you can claim the Foreign Earned Income Exclusion for the portion of the year you lived abroad and earned foreign income. This often results in no US tax owed, but you still file the return to claim the exclusion.

The combination can mean you owe tax to one country and receive a refund from the other, or owe to both. File both returns to see where you stand. Don't assume that because you moved partway through the year you'll automatically receive a refund.

Common reasons refunds are delayed or rejected

HMRC delays refunds when your return contains errors, when you've claimed a relief they need to verify, or when your income is unusually high or variable. They may also hold a refund if you owe money to another government department. Once they resolve the issue, the refund is processed and sent within the normal timeframe.

The IRS delays refunds when your return is incomplete, when the Social Security number on your return doesn't match IRS records, or when you've claimed certain credits (like the Earned Income Tax Credit) that require verification. If you filed electronically and the IRS rejects your return, you'll receive an email or letter explaining why. You then correct the return and resubmit it, which restarts the processing clock.

Bank transfer failures are common for US refunds to UK accounts. The IRS sends the transfer using SWIFT codes and IBAN numbers, but some UK banks flag these as unusual and reject them. If this happens, the IRS will send you a notice and hold the refund. You can request a paper check instead, which takes longer but avoids the bank rejection issue.

Frequently Asked Questions

Can I get a refund from both HMRC and the IRS in the same year?

Yes, if you've overpaid tax to both countries. This often happens if you earned UK income and claimed the US Foreign Earned Income Exclusion, resulting in no US tax owed but a refund of taxes withheld. File both returns separately; each country processes its own refund independently.

What if my UK bank rejects the IRS refund transfer?

The IRS will receive a rejection notice and send you a letter explaining what happened. You can then request a paper check, which the IRS mails to your London address. This adds 4 to 6 weeks to the timeline. To avoid this, provide your IBAN and SWIFT code exactly as your bank lists them on your IRS return.

How long does it take to get a refund if I file my UK return late?

HMRC processes late returns the same way as on-time returns, so the refund timeline is the same: 4 to 8 weeks. However, if you file more than 12 months after the tax year ends, HMRC may not process a refund at all and may instead apply it to future tax bills. File as soon as you have your documents.

Do I need to file both a UK and US return if I only earned UK income?

If you're a US citizen or green card holder, yes — you file a US return even if all your income is from the UK. You'll claim the Foreign Earned Income Exclusion to avoid double taxation. If you're a UK resident who is not a US citizen, you file only with HMRC.

What if HMRC says I owe money instead of a refund?

HMRC will tell you how much you owe and give you a deadline to pay, usually 30 days from the notice date. You can pay online through your HMRC account, by bank transfer, or by cheque. If you can't pay in full, contact HMRC to arrange a payment plan.