How do you get a repayment from HMRC?

How do you get a repayment from HMRC?


When you have overpaid tax, you obviously want it repaid. But how do you get a repayment from HMRC?

How will you know if you are entitled to a refund of tax? And once you know is it necessary to complete a Self-Assessment Tax Return?


When will I be due a tax repayment?

Everyone is entitled to a personal tax allowance.  For the current tax year (2022/2023) it is £12,570. Only once you reach this allowance will you have to pay tax.

On occasions even if your annual income is less than the £12,570 you may have paid tax for various reasons.  You may have paid tax whilst working under PAYE either by error or because you were expecting to earn more but didn’t in the end.

Overpayment of PAYE tax is also quite common when you are working as a temp, agency worker or are a student.

If this applies to you check your figures.  Understanding your payslip will help you make sure you are getting paid the right amount.

There are times you may have paid tax on bank interest and other savings when you didn’t need to. In which case you will be entitled to a refund.

You may also be entitled to a tax repayment if you are entitled to higher rate tax relief on pension contributions.  Most personal pension contributions receive 20% tax relief at source.

For example, if you are contributing of £100 a month, you should only be paying £80. But if you are a higher rate taxpayer, paying tax say at 40%, whilst you are entitled to tax relief of £40 not all of it will be at source.

For a 40% taxpayer, you will still pay £80 and the remainder 20% (£20 in this example) will be received via an adjustment to your PAYE code.  But if HMRC are not aware of the pension contributions then you will miss out.  In which case you need to claim a repayment.

Do I need to complete a tax return to get a refund?

So how do you get a repayment from HMRC?  The mechanism is to complete a form R40.  Apply for a refund either online or post.  In order to use the online service you will need a Government Gateway ID.

You are also able to go back 4 years to make a repayment claim.

You cannot however use the form R40 facility if meet the criteria to complete a tax return (see below).

When do I need to complete a tax return?

As a taxpayer you only need to complete a personal tax return if you receive any income which is liable to tax and is not taxed at source.

Common examples are self-employment (even if it is side hustle), rental income, untaxed investment income and dividends from shares.  However, in the interest of making tax simpler, limits have been set within each group and only if income falls above these will you need to pay tax.  The limits are:


  • Trading Income £1,000
  • Property Income £1,000
  • Dividend Income £2,000
  • Savings Income £1,000 or £500 for higher rate taxpayer


A different set of rules now apply for reporting capital gains for residential properties. It is no longer necessary to complete a tax return just to report any capital gains but instead there is a strict in year 60 day deadline for both reporting and payment of tax.

Have you got your Personal Tax Account (PTA) set up?

It is easier to keep track of your personal tax affairs if you have a personal tax account.

You can use your personal tax account not only to keep tabs on your personal tax affairs but it will also give you details of your state retirement pension and forecasts hence giving you a bit more control and help you plan your future goals.

More information on how to set up your own PTA can be found here

How can we help you?

Dealing with your personal tax affairs especially when you have multiple sources of income is not always easy.  That’s where we can help.

Myers Clark can support you with your tax compliance and take the weight off your shoulders completely.

You can by start today by completing this form and let us help you work out what you need to pay the taxman and where you can make savings.