How HMRC sends you money back

HMRC (Her Majesty's Revenue and Customs) sends tax refunds directly to your bank account if you have overpaid tax during the tax year. The refund goes to the account you registered with HMRC — usually the one linked to your Self Assessment tax return or your employer's payroll records. You do not need to request the refund; HMRC calculates it automatically when they process your tax return.

The timing depends on how you filed. If you filed your Self Assessment return online before the 31 January deadline, HMRC typically processes refunds within 5 to 10 working days. If you filed on paper or after the deadline, processing takes longer — sometimes 4 to 8 weeks. HMRC will send you a letter confirming the refund amount and the date it will arrive in your account.

If you are an employee and overpaid tax through PAYE (Pay As You Earn), HMRC may refund you automatically without you filing a return at all. This happens when your tax code was wrong or you left a job partway through the year. You can check if a refund is due by logging into your HMRC online account or calling the HMRC helpline.

Key Takeaways

  • HMRC sends refunds automatically to your registered bank account once they process your tax return — you do not need to request one.
  • Online Self Assessment returns filed before 31 January are processed within 5 to 10 working days; paper returns and late filings take 4 to 8 weeks.
  • HMRC will send you a letter with the refund amount and expected arrival date before the money reaches your account.
  • Employees who overpaid PAYE tax may receive a refund without filing a return if HMRC identifies the overpayment during their annual review.
  • You can track your refund status and check your tax account through the HMRC online portal or by phone.

Checking your tax account online

The fastest way to see whether a refund is due is to log into your HMRC online account using your Government Gateway credentials. Once logged in, you can view your tax return, your tax code, and any refunds HMRC has recorded. The account shows your current tax position and any money HMRC owes you.

If you have not set up an online account yet, you can register at www.tax.service.gov.uk. You will need your National Insurance number, postcode, and date of birth. Registration takes a few minutes, and you can access your account immediately afterward. The online account works for Self Assessment, PAYE, and most other tax matters.

Once you are logged in, look for the section showing your tax calculation or your Self Assessment return. This will show whether you have overpaid and whether a refund has been processed. If a refund is pending, the account will usually show the expected date it will arrive in your bank account.

Filing a Self Assessment return to claim a refund

If you are self-employed or have income HMRC does not know about, you must file a Self Assessment tax return to claim a refund. You can file online through your HMRC account or by post using a paper form. The online route is faster and HMRC processes it more quickly.

To file online, log into your HMRC account, select "Self Assessment" and follow the steps to file your return. You will need records of your income, expenses, and any tax already paid. Once you submit the return, HMRC will calculate whether you owe tax or are due a refund. If you are due a refund, it will be processed according to the timeline above.

The Self Assessment tax year runs from 6 April to 5 April the following year. The deadline to file your return and pay any tax owed is 31 January. If you file after this date, HMRC may charge a penalty, and your refund will take longer to process. If you need more time, you can request a deadline extension through your online account before 31 January.

Refunds for PAYE employees

If you are employed and pay tax through PAYE, you may be due a refund if your employer applied the wrong tax code, you worked part of the year, or you had two jobs. HMRC reviews PAYE records automatically and will contact you if they find an overpayment. In most cases, they will refund the money without you needing to do anything.

You can check whether a PAYE refund is due by logging into your HMRC account and viewing your tax code and tax calculation. If you think you have overpaid but do not see a refund recorded, call the HMRC Income Tax helpline on 0300 200 3300 (Monday to Friday, 8am to 8pm). Have your National Insurance number and recent payslips ready.

HMRC will not refund PAYE overpayments automatically if you have not filed a Self Assessment return and do not have an online account. In this case, you may need to contact HMRC directly or file a return to claim the refund. The process is straightforward, but it does require you to take the first step.

What to do if your refund is delayed

If HMRC has not sent your refund within the expected timeframe, first check your online account to confirm the refund was processed. Sometimes HMRC records a refund as sent before it actually arrives in your bank account — delays of a few extra days are common, especially if you filed late or by post.

If more than two weeks have passed since HMRC sent the refund letter and the money has not arrived, contact your bank first. Ask them to check whether the payment is in transit or whether there is a problem with your account details. If your bank confirms they have not received the payment, contact HMRC on 0300 200 3300 with your refund reference number (from the letter HMRC sent you).

HMRC may delay a refund if they are investigating your tax return, if you have outstanding tax debts from previous years, or if there is a discrepancy in your records. If this is the case, HMRC will usually tell you in writing. Do not assume the refund is lost — contact HMRC to find out what is holding it up.

Refunds if you have changed address or bank account

If you have moved house or changed your bank account since you filed your tax return, you must update your details with HMRC before the refund is processed. If HMRC sends the refund to an old bank account, the money will be returned to HMRC and you will have to claim it again.

Update your address through your HMRC online account or by calling 0300 200 3300. Update your bank details in the same way. If you have already filed your return and then changed your bank account, contact HMRC immediately to give them your new details. Include your new sort code and account number, and confirm the name the account is registered under.

If a refund has already been sent to an old account, contact your previous bank and ask them to return it to HMRC. Once HMRC receives the returned payment, they will reprocess the refund to your new account. This can add several weeks to the timeline, so updating your details before filing is always faster.

Refunds for overpaid National Insurance contributions

You may also be due a refund of National Insurance contributions if you were overpaid or if you worked in more than one job during the tax year. These refunds are handled separately from income tax refunds but are processed through the same HMRC system.

National Insurance refunds are usually claimed as part of your Self Assessment return if you are self-employed, or HMRC will identify them automatically if you are an employee. If you think you have overpaid National Insurance, check your online account or contact HMRC. The refund will be sent to your bank account along with any income tax refund you are due.

Frequently Asked Questions

How long does it take HMRC to send a tax refund?

Online Self Assessment returns filed before 31 January are processed within 5 to 10 working days. Paper returns and returns filed after the deadline take 4 to 8 weeks. PAYE refunds for employees are usually processed within 4 to 6 weeks once HMRC identifies the overpayment.

Can I claim a refund for tax I paid in previous years?

Yes, but there are time limits. You can claim a refund for up to four years of overpaid tax, counting back from the current tax year. Contact HMRC with details of the years you overpaid, and they will calculate what is due. You will need records of your income and tax paid for those years.

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

If your tax return shows you owe money, HMRC will send you a bill with a payment deadline. You can pay online through your HMRC account, by bank transfer, or by post. If you cannot pay in full, contact HMRC to discuss a payment plan.

Do I need to file a Self Assessment return if I only work as an employee?

No, unless you have other income HMRC does not know about. If you are only an employee and overpaid PAYE tax, HMRC will refund it automatically without a return. However, if you want to claim back overpaid tax quickly, filing a return can speed up the process.

What happens if I do not receive the refund letter HMRC sent?

Check your online account to see if a refund has been recorded. If it has, the money should arrive within a few days. If you cannot find any record of a refund and you believe you are due one, contact HMRC on 0300 200 3300 with your National Insurance number and tax year details.