When a taxpayer realises they’ve overpaid tax, one of the first questions they ask is: how long does it take for HMRC to process and send a tax refund into the bank? The answer depends on several factors, including the type of income, how the refund is claimed, and HMRC’s internal processing systems.
Understanding the refund process from start to finish helps individuals manage their expectations and ensure a smooth and timely repayment.
What Are the Different Types of HMRC Tax Refunds?
HMRC offers tax refunds across a range of scenarios where individuals or businesses have paid more tax than necessary.
These refunds are typically linked to employment status, income type, tax reliefs, and adjustments in tax codes or allowances. Each type of refund has a slightly different process and timeline depending on how it’s claimed and assessed.
PAYE Refunds for Employment or Pension Income
Most UK taxpayers pay income tax through the Pay As You Earn (PAYE) system, where employers or pension providers deduct tax directly from wages or pensions. Overpayments can occur if:
- The taxpayer changes jobs or stops working mid-tax year.
- An incorrect tax code is applied.
- Income is lower than expected due to sickness, maternity leave, or redundancy.
- The individual has more than one source of income not properly coordinated by HMRC.
In these cases, refunds are usually processed either automatically by HMRC at year-end or can be claimed using the Personal Tax Account.
Construction Industry Scheme (CIS) Tax Refunds
Subcontractors working under the Construction Industry Scheme (CIS) often have tax deducted at a flat rate of 20% or 30% from their payments. This deduction doesn’t account for allowable expenses or personal allowances, often resulting in overpaid tax.
To reclaim this, CIS workers typically need to complete a Self Assessment tax return. Once submitted and processed, HMRC calculates the overpayment and issues a refund. These claims are more likely to be scrutinised, particularly if they involve high expense deductions.
Overpaid Tax on Savings Income
When savings interest is earned in taxable accounts and the total income exceeds the Personal Savings Allowance, tax may be deducted automatically. In some cases, basic-rate taxpayers or those with non-taxable interest still have tax withheld, leading to overpayment.
Refunds can be claimed for:
- Bank or building society interest with tax deducted.
- Income from investment accounts not covered by ISAs.
- Tax withheld erroneously on small amounts of interest.
These claims may require completion of form R40 if the taxpayer does not complete a Self Assessment return.
Marriage Allowance Refunds
Couples where one partner earns below the Personal Allowance threshold (£12,570 as of the 2024/25 tax year) and the other is a basic-rate taxpayer may be eligible for the Marriage Allowance. This allows one partner to transfer a portion of their unused allowance to the other, reducing overall tax liability.
If HMRC has not applied this transfer automatically or there was a delay in the claim, overpaid tax can be refunded retroactively for up to four tax years. The refund is generally processed once the allowance transfer is registered and approved.
PPI Payout-Related Refunds
When individuals receive Payment Protection Insurance (PPI) compensation, it often includes statutory interest, which is taxed at 20% automatically.
If the individual’s total income is below the tax-free threshold or they have unused savings allowance, they may be entitled to a refund of that tax.
These refunds can be claimed using form R40, provided the recipient does not need to file a tax return. If they do file a return, the refund will be included in the normal Self Assessment calculation.
Tax Relief on Employment Expenses
Employees who incur certain out-of-pocket expenses for their job may claim tax relief. This includes costs such as:
- Uniforms and tools required for work.
- Professional memberships or union fees.
- Mileage for business travel (excluding commuting).
If HMRC doesn’t automatically factor these into the tax code, individuals can submit a claim for the current and previous four tax years. Claims can be submitted online or by post using form P87. Overpaid tax is refunded once HMRC processes the claim.
National Insurance Refunds (Less Common)
Refunds for National Insurance Contributions (NICs) are uncommon but can occur if an individual:
- Has paid Class 1 NICs while also paying Class 2 or Class 4 NICs due to self-employment.
- Has earnings incorrectly reported under multiple jobs.
- Exceeded the annual NIC maximum threshold.
NIC refunds usually require a separate claim and detailed earnings records. They are not part of the standard HMRC tax refund processes and can take longer to resolve.
Other Situations: Investment-Related Reliefs
Some forms of investment-related tax relief, such as those under the Enterprise Investment Scheme (EIS), may also result in a repayment. Under EIS, individuals investing in qualifying companies can claim income tax relief of 30% of the amount invested.
These refunds are usually processed through Self Assessment or by submitting form EIS3. However, due to the complexity and potential for fraudulent claims, such refunds undergo detailed scrutiny and are not typically processed as quickly as standard overpayment refunds.
How Can You Identify If You’ve Overpaid Tax?
Determining whether too much tax has been paid requires reviewing all taxable income and comparing it with the amount of tax HMRC has collected.
Many overpayments are identified through end-of-year reviews, while others are discovered by taxpayers during their own financial reviews.
To do this accurately, individuals should gather documentation such as:
- P60s and P45s for employment and pension income.
- P11D forms detailing any taxable employee benefits.
- Bank and building society interest statements showing deducted tax.
- Dividend statements and rental income summaries.
These documents allow a full picture of both income and deductions for the relevant tax year. Overpayments are particularly common in cases where employment starts or ends mid-year, or when personal allowances are not fully used.
How Do You Calculate Your Tax Liability Before Claiming a Refund?
To verify whether a refund is due, you must first calculate total gross taxable income. This includes income before any tax is deducted from employment, savings, dividends, pensions, and property. You then subtract allowable deductions and apply any tax-free allowances.
The final tax liability can then be calculated using the appropriate income tax bands for the UK or Scotland, depending on the taxpayer’s residence status. This figure is compared to the actual tax paid to determine if an overpayment exists.
| Calculation Step | Description |
| Total Gross Income | Add income from all sources: employment, savings, dividends, rentals |
| Allowable Deductions | Subtract expenses (e.g., work-related costs, pension contributions) |
| Apply Tax Bands and Allowances | Calculate the tax due based on applicable UK/Scottish tax bands |
| Compare with Tax Paid | Check if more tax was paid than the final liability |
Discrepancies between the tax paid and liability are what determine if a refund is owed and how much it will be.
What Are the HMRC Deadlines for Claiming Tax Refunds?
Taxpayers have up to four years from the end of the tax year in which the overpayment occurred to submit a refund claim.
This statutory time limit is strictly enforced, and claims outside of it will usually be denied.
Here is a clear breakdown of deadlines for recent tax years:
| Tax Year | Final Date to Submit Refund Claim |
| 2021/22 | 5 April 2026 |
| 2022/23 | 5 April 2027 |
| 2023/24 | 5 April 2028 |
| 2024/25 | 5 April 2029 |
An exception to this rule exists under Extra-Statutory Concession B41, which allows HMRC to process a claim even after the deadline, but only in cases of official error.
To qualify, there must be no doubt about the facts, and clear evidence must show the mistake was HMRC’s fault or that of another government department.
How Long Does It Take to Get a Refund from a Self-Assessment Return?
If a taxpayer submits a self-assessment return showing overpaid tax, HMRC typically processes the refund once the return has been verified. The timeline depends on the method of submission:
- Online returns are generally processed faster—refunds often appear in bank accounts within 5 working days after processing.
- Paper returns may take longer, with processing and refund taking several weeks.
However, in both cases, security checks can delay payment, particularly where HMRC needs to verify bank details or the identity of the claimant.
How Quickly Will HMRC Send a Refund After a P800 Calculation?
When HMRC issues a P800 calculation, it means they’ve identified an overpayment through their own internal reconciliation process. This usually occurs at the end of the tax year when PAYE data is reviewed.
Two refund pathways follow a P800 calculation:
- Online Claim: If the letter instructs that a refund can be claimed online, it can be requested through the Personal Tax Account. Once requested, the refund is usually processed within five working days via BACS.
- Automatic Cheque: If no action is required and the letter says a cheque will be sent, taxpayers typically receive it within 14 calendar days of the P800’s issue date.
A new online service introduced by HMRC has improved the speed of bank transfers for those opting to claim through their PTA account or HMRC’s mobile app.
What If You Claim a Tax Refund Outside of the Self-Assessment System?
Tax refunds outside of self-assessment generally involve forms submitted to HMRC either online or by post. These are usually for PAYE taxpayers reclaiming overpaid tax or expenses incurred in their job role.
Online submissions are favoured by HMRC and tend to result in quicker processing, while paper forms are often delayed by postal delivery times and manual processing.
| Submission Method | Typical Processing Time | Payment Method |
| Online Form | 2–4 weeks | Cheque |
| Paper Form | 4–6 weeks or more | Cheque |
Even when forms are submitted digitally, HMRC still issues many non-Self Assessment refunds by cheque due to internal processing rules.
Can Delays in HMRC Tax Refunds Happen and Why?
Several issues can cause tax refunds to be delayed:
- HMRC often performs security and identity checks for larger or unusual refund claims.
- Incorrect or missing bank details may prompt HMRC to switch to cheque payments, which take longer to arrive.
- Refund claims made via paper forms must be manually entered into HMRC’s systems, delaying the process.
- Backlogs occur more frequently following peak filing deadlines, such as just after the end of the tax year.
To avoid delays, claimants should:
- Use their Personal Tax Account to submit and track claims.
- Ensure all required documents and figures are accurate.
- Double-check that bank details are entered correctly, if applicable.
How Can You Check the Status of Your HMRC Refund?
The most reliable way to track a tax refund is through HMRC’s online tools. The Personal Tax Account (PTA) provides a real-time view of refund status and allows users to update bank details or address discrepancies.
HMRC has also developed a mobile app that notifies users of updates regarding their refund, such as when it has been approved or sent.
If digital tools are unavailable or a refund appears delayed, contacting HMRC by phone remains a viable option. However, wait times on the helpline can be significant during busy periods, such as after Self Assessment deadlines.
Conclusion: What Should You Expect From Your HMRC Refund Timeline?
HMRC tax refund processing times vary depending on how the overpayment was identified and how the claim is submitted. As a general rule:
| Refund Type | Processing Time | Payment Method |
| Self-Assessment (online) | 5 working days post-processing | Bank (BACS) |
| Self-Assessment (paper) | Several weeks | Bank or cheque |
| P800 – claim online | Up to 5 working days | Bank (BACS) |
| P800 – automatic cheque | Within 14 days of notice | Cheque |
| PAYE or Employment Expenses (online) | Few weeks | Cheque |
| PAYE or Employment Expenses (paper) | Up to 6 weeks | Cheque |
To ensure timely repayment, use HMRC’s online services, keep records accurate, and submit claims well before the deadline.
FAQs
How do I know if HMRC owes me a tax refund?
Taxpayers will either receive a P800 calculation or can check their Personal Tax Account to confirm if a refund is due.
Why is my HMRC refund taking so long?
Delays typically result from HMRC security checks, processing errors, or submission of incomplete documents.
Can HMRC pay my refund directly into my bank account?
Yes, if the refund is claimed online or via self-assessment, HMRC can issue a BACS payment directly to your account.
What is a P800 and when is it issued?
A P800 is a tax calculation issued by HMRC if too much or too little tax has been paid during the tax year. It’s usually issued after the tax year ends.
Do I have to pay tax on my HMRC refund?
No, HMRC refunds are simply repayments of overpaid tax and are not considered taxable income.
Can I get a tax refund if I don’t file a self-assessment return?
Yes, individuals under PAYE can still claim tax refunds separately through forms or their Personal Tax Account.
How long does it take to get a refund from HMRC for employment expenses?
It may take a few weeks for online claims to be processed. Paper forms may take up to six weeks or more.
