Complete Guide : How To Claim Income TAX In UK

A guide to claiming back Income Tax

It is not uncommon to overpay income tax, and this guide will help you get it back.

QUICK CLAIM-BACK TAX TIP:

If you overpaid tax, you’ll have to ring HMRC: 

Have your National Insurance number with you when you phone.

Telephone:
0300 200 3300

Textphone:
0300 200 3319

Outside UK:
+44 135 535 9022

Opening times:

Monday to Friday: 8am to 8pm 
Saturday: 8am to 4pm 
Sunday: 9am to 5pm 

Closed bank holidays, Easter Sunday, Christmas Day, Boxing Day and New Year’s Day.

Now more details about how to claim back income tax:

Often, the HMRC will know that you’ve overpaid when they make their P800 tax calculation. If you are in full/part time employment Each year your employer will supply HMRC with the total of wages and benefits you have received during the tax year. HMRC use this information to calculate the exact amount of tax you should have paid, and often will refund any overpayment automatically. You will know this has been done as HMRC will send you your P800. Once you do receive it, check it carefully as sometimes HMRC don’t have all the information and may have missed something. If they have, it is your responsibility to correct the error. Claiming on-line If you haven’t received a P800, but suspect that you may have overpaid your tax, and you are registered with HMRC on-line, you can make your claim HERE. You can also claim back for previous years’ overpaid tax. To do this you will need your P60 or a recent wage slip, along with your national insurance number. Common reasons for overpayment of tax are;

  • You were in employment for only a part of the year.You had more than one job.
  • You started a new job and for a period were taxed through the emergency tax code.
  • You are a student and were only employed during the holidays.
  • Your employer used the wrong tax code.
  • You stopped work before the tax year end.
  • You went from full time employment to part time employment.

Claiming by telephone If you don’t have an on-line account with HMRC, or just prefer not to do it online, an alternative is to do it by phone, on 0300 200 3300, or if overseas, +44 135 535 9022. If you decide upon this route they will ask you for the following information. Your full name, address, date of birth and National Insurance number. Your employer’s details, and your PAYE scheme reference number (this can be found on your pay slip). An estimate of your earnings from your job/jobs. HMRC may request further information, and if so will let you know exactly what they need. It’s a good idea to make notes of the conversation, along with the date and time that you made the call (all calls are recorded so if a dispute arises they will be able to check the original call). After your claim has been processed, and it is found that you have overpaid, you will receive your rebate through your company’s payroll, i.e. a refund or a lower tax deduction through PAYE. In some cases, you may need to claim any overpayments from HMRC directly. HMRC may also change your tax code, depending on the information that you have provided them with. Claiming by mail You can also claim your tax rebate by using that ancient method of correspondence; writing to them. Again, you will need to provide details of your name, address, date of birth, and National Insurance number. You should also as much information as possible, such as dates of employment, total earnings, PAYE reference numbers (found on your payslip), copies (do not send originals) of P60s and P45s, and reasons why you think you are due a refund. Also, make sure that the letter is correctly signed and dated. You can find a helpful template to make your claim HERE Tax saving tips

  • Check your tax code every year (you’ll find it on your payslip). If you’re on the wrong code you could be paying too much tax.
  • Don’t miss your tax return deadlines. October 31st for paper returns, January 31st for on-line returns. If you do, you may get fined.
  • If you run your own business or are a landlord take advantage of the Annual Investment Allowance (AIA). The AIA allows you to claim on expenditure for tools, computers, or anything that is necessary for you to run your business.
  • If you are married or in a civil partnership, and both in the basic rate tax bracket, the lower earner can transfer up to £1,150 of their personal allowance to the higher earner through the ‘Marriage Allowance’.
  • If your husband/wife/civil partner is on a lower tax band you can you can also transfer assets, such as savings and investments, over.
  • Take advantage of your ISA tax free allowance, which lets you invest up to £20,000 per year in savings, stocks and shares tax free.
  • If you have to commute to and from work, check if your employer offers an interest free loan for your season ticket.
  • Check if your employer has signed up to Cyclescheme, which would enable you to purchase a bike and equipment via a tax-free loan, saving you 25% of the costs.
  • If you have a company car, check whether it would be more tax efficient to take a cash equivalent instead.
  • If not, opt for a low emission model as they are taxed at a lower percentage.
  • If you are self-employed you can claim for the running costs of your car.
  • If self-employed you can carry the losses from one year and off set them on the profits of the next.
  • If you are of retirement age but still working, make sure that you are no longer paying national insurance.