Will I Automatically Get a Tax Refund in the UK?
Posted on 14th April 2025
At Brilliant Accountants in Milton Keynes, we understand that tax and returns can often feel confusing, especially when you’re wondering if you’ll automatically receive a tax refund. That’s why we’re here to explain how tax refunds work, when they apply and what steps you might need to take to get your money back.
As of 31 May 2024, HM Revenue and Customs (HMRC) changed how it processes tax refunds. In the past, some repayments were issued automatically. Now, if your P800 tax calculation shows you’re due a refund, you must actively claim it via your HMRC Personal Tax Account.
What Is a Tax Refund?
A tax refund is a repayment of overpaid income tax from HMRC. This can occur if the tax you’ve paid through Pay As You Earn (PAYE) or Self Assessment is more than your actual tax liability. At Brilliant Accountants, we’ve helped countless individuals, sole traders, freelancers, and limited company directors identify and claim the refunds to which they are entitled.
Many people don’t realise they’ve overpaid tax until we take a closer look.
Are You in the Construction Industry?
If you work under the Construction Industry Scheme (CIS), your contractor will have deducted tax at source before paying you. It’s very common for subcontractors to overpay tax throughout the year. You could be due a CIS tax refund, especially if you have work-related expenses.
Let us handle your CIS tax return and get back what’s rightfully yours.
Who Might Be Eligible for a Tax Refund?
You may be owed a tax refund if:
You’ve overpaid tax through Pay As You Earn (PAYE) – This can happen if your employer uses an incorrect tax code.
You didn’t claim all your allowances, such as the Marriage Allowance or expenses for work uniforms, tools, or business travel.
You changed jobs or stopped working mid-year. If your income fell below the annual Personal Allowance (£12,570 for 2024/25), you might have paid too much.
You’re self-employed and overestimated your payments on account – A common scenario for freelancers and contractors.
We specialise in working with a wide range of clients, from new businesses and landlords to contractors and partnerships. Whatever your situation, we’ll review your tax history to see if you’re owed money.
How Will You Know If You’re Due a Refund?
To find out whether you’re due a tax refund:
Log in to your HMRC Personal Tax Account
Review your tax code, P60, and payslips
Keep track of changes in income, employment, or allowable expenses
Still unsure? Get in touch with us, and we’ll do the hard work for you.
Do Tax Refunds Happen Automatically?
Not anymore. HMRC may adjust your tax code for future earnings, but you must claim it if you’re due a refund from a previous tax year.
👉 We can handle this entire process on your behalf so you don’t miss out. We’ll establish your position and make your claim for a refund – it’s our most popular service for individual tax payers. Please give us a call or complete the contact us form and we will get in touch.
How to Claim Your Tax Refund
Here’s how it works:
Log in to your HMRC account via GOV.UK
Check your P800 to see if you’re owed money
Submit a claim online or by post, depending on your circumstances
For some, this involves submitting a self-assessment tax return or completing a P50 if you’ve stopped working.
Need help? We’ve helped hundreds of individuals and businesses submit accurate, timely claims.
When Will You Receive the Refund?
Once your claim is submitted, HMRC usually processes refunds within 2 - 8 weeks, depending on the time of year. Refunds are typically paid directly into your bank account, so keep an eye on your statements.
What is the deadline for claiming a tax refund from HMRC?
In the UK, taxpayers have up to four years from the end of the relevant tax year to claim a refund. For instance, for the 2025/26 tax year ending on 5 April 2026, the deadline to claim a refund would be 5 April 2030.
Will HMRC pay interest on delayed tax refunds?
Yes, HMRC does pay interest on overpaid tax from the date of payment to the date of refund. HMRC interest rates are established by legislation and are linked to the Bank of England's base rate. There are two types of rates:
Late Payment Interest: This is set at the base rate plus 4% starting from April 6, 2025. Previously, it was set at the base rate plus 2.5% until April 5, 2025.
Repayment Interest: This is set at the base rate minus 1%, with a minimum limit of 0.5%, which is known as the "minimum floor."
What are the typical processing times for tax refund claims submitted to HMRC?
Generally, HMRC processes online refund claims within 5 working days, while paper submissions may take longer. However, during peak periods, such as the end of the tax year, processing times can extend.
Final Thoughts from Brilliant Accountants
Tax shouldn’t be a mystery. If you suspect you’re owed money, it’s worth investigating. Refunds no longer happen automatically, and thousands of pounds go unclaimed yearly.
At Brilliant Accountants, we offer personalised accounting services to help:
✅ Let us help you claim what’s yours - quickly, efficiently, and professionally.
Ready to Find Out If You’re Owed a Tax Refund?
Contact Brilliant Accountants today for expert, friendly advice. We’ll assess your eligibility and manage your claim from start to finish. Don’t leave money on the table. Let’s get your finances back in order.
📞 Call us on 01908 686860
📧 Email: info@brilliant-accountants.co.uk
🌐 Visit: www.miltonkeynesaccountants.co.uk
Tagged as: Self-Assessment, Tax Planning
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