How to get a refund when you pay too much tax

Hey guys - Noah here,

Most people have no idea they can claim their money back if you pay too much tax to HMRC. Even fewer know the government actually pays you extra for their mistake.

Let me show you exactly how to check if you're owed money too...

The £3 Billion Secret Nobody Talks About

Every year, UK taxpayers overpay roughly £3 billion in tax with the average refund being about £600 per person.

Most people never claim it back. They assume once the tax is gone, it's gone forever.

Wrong.

Why You've Probably Overpaid (Without Knowing)

Here's what catches people out:

The Wrong Tax Code Trap Your tax code determines how much tax you pay. But here's the thing - employers often get it wrong. If you've switched jobs, had multiple jobs, or received benefits, your code could be completely off.

The Emergency Tax Nightmare Started a new job recently? You probably got whacked with emergency tax. That's when HMRC doesn't know your situation, so they tax you at a higher rate "just in case."

The Student Loan Mix-Up Graduated recently but still paying student loan deductions? Or paying the wrong plan type? That's money you can claim back.

The Work From Home Allowance Been working from home? You can claim tax relief on £6 per week (£312 per year). Most people never bother.

How to Check If You're Owed Money (Takes 10 Minutes)

Step 1: Check your tax code Look at your payslip. See that code next to "Tax Code"?

• If it's "BR", "0T" or "W1/M1" - you're probably overpaying

• If it's not "1257L" (the standard code) - double-check it's right

Step 2: Get your P60 Your employer gives you this every April. It shows exactly how much tax you paid last year. Lost it? Ask HR for another copy.

Step 3: Check HMRC's calculator Go to gov.uk and use their "Check your Income Tax" tool. Input your income and tax paid. It'll tell you instantly if you've overpaid.

Step 4: Submit your claim Found you've overpaid? You can claim online through your Personal Tax Account or ring HMRC.

The Interest Bonus Nobody Mentions

Here's the brilliant bit - HMRC pays you interest on overpaid tax.

Current rate? 4.25% per year.

So if you overpaid £600 two years ago, you'd get roughly £651 back today.

It's not life-changing money, but it's literally free cash for making one phone call.

Specific Situations to Check Right Now

You started a new job this tax year Almost guaranteed to be on emergency tax. Average refund: £250-500

You only worked part of the year If you earned less than £12,570 total, you shouldn't have paid any tax. Full refund coming your way.

You have multiple jobs Your tax-free allowance might be split wrong. Could be owed hundreds.

You left the UK Moved abroad? You can claim back overpaid tax for the year you left.

You're self-employed with a day job Your employed income might have been taxed assuming no other income. Big refund potential.

The 4-Year Rule (Don't Miss Out)

You can only claim refunds going back 4 years.

That means right now, you can claim for:

• 2024/25 (current year)

• 2023/24

• 2022/23

• 2021/22

• 2020/21

Come April, you'll lose 2020/21 forever. That could be hundreds of pounds gone.

What to Do Today

1. Dig out your last 3 payslips

2. Check your tax code isn't BR, 0T, or W1/M1

3. Log into your Personal Tax Account at gov.uk

4. Use the calculator to check for overpayments

5. Submit a claim if you're owed money

6. Set a reminder to check again in April (after you get your P60)

The whole process takes 20 minutes max. For potentially hundreds of pounds back.

Quick heads up - tracking your tax is so much easier when you can see all your finances in one place. I use Snoop to spot when something looks off with my deductions.

It's free and connects all your accounts to spot issues like this automatically: Try Snoop free here

Have you ever checked if you're overpaying tax? Or have you been leaving money on the table like most people? Let me know...

Noah