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Do HMRC Automatically Refund Overpaid Tax?

You can submit your 2022/2023 self assessment tax return from 6th April 2023.

It is important to be aware of your tax position because there are time limits on when you can make a claim for overpaid tax and apply for your tax rebate.

Regardless of your employment status i.e. you’re an employee, self-employed, or own a company, it is possible for any taxpayer to pay too much tax to HMRC.

For this reason there are procedures in place for overpaid tax to be refunded. It’s not always an automatic process, so depending on the reason behind the overpaid tax will depend on whether this is automatically refunded.


  • If you are self employed under the Construction scheme you are taxed at source, meaning your personal allowance is not taken into consideration. In addition, Self-employed individuals having a tax bill in excess of £1,000 are asked to make Payments on Account for the following year. If your profit is less than the previous year the predicted Payment on Account requested will be higher than necessary, resulting in a refund.
  • You were on an emergency tax code when you started a new job.
  • You have more than one job and you lose some of your personal allowance entitlement because the second job applies Basic Rate tax to your entire salary.
  • Pay as you earn (PAYE) is connected to an incorrect tax code issued by HMRC, or your employer applies the wrong one.
  • Work expenses tax reliefs and allowances

There are scenarios that could lead to the overpayment of tax which include having more than one pension or leaving the country without using up your whole personal allowance.

Does HMRC Automatically Refund Overpaid Tax?

If the overpayment is caused through a PAYE scheme then HMRC are more than likely to automatically refund this back to you. If the overpayment is due to having “work expenses” for your PAYE job you need to apply for the refund. If you are due a refund because you are self-employed and worked under the Construction Scheme, you will need to submit a self assessment. The final calculation let’s HMRC know you are due a refund and this is usually received within a couple of weeks of submission.

What’s the Deadline for Filing a Self-assessment Tax Return?

You must file your self-assessment tax return by midnight 31st January in the year following the tax year in question. For example, for the 2022-23 tax year, the deadline is 31st January 2024. This is also the deadline to pay that year’s tax bill in full.

You don’t have to wait until the deadline to file your tax return. As soon as the tax year ends, you can get it over and done with.

Are There Any Penalties for Missing Self-Assessment Deadlines?

Yes, HMRC will fine you if you submit your tax return late.

Contact us to get the help you need when you need it.