I've paid too much tax on my payslip. How do I get a refund?

The UK's Pay As You Earn (PAYE) system is designed to collect tax accurately across the 12 months of the year. But it relies entirely on your employer and HMRC having the correct data. When they don't, you get overtaxed. Here is the step-by-step process to getting your money back.

Step 1: Check your Tax Code first

99% of all tax overpayments are caused by an incorrect tax code. Look at the top or bottom corner of your payslip for a box labelled "Tax Code".

• If it says 0T or BR (and this is your only job), you are being overtaxed.
• If it says 1257L W1 or 1257L M1, you are on a non-cumulative emergency tax code and are likely overpaying.
• If it says 1257L, your tax code is correct, and the high deduction might actually be accurate (perhaps due to a large bonus or overtime pushing you into the 40% band).

Step 2: The In-Year Fix (Fastest Method)

If you are still working for the same employer, the fastest way to get your money back is to have it refunded directly into your next payslip. Because the PAYE system is cumulative, the payroll software will automatically refund any overpaid tax the moment your tax code is corrected.

You cannot ask your employer to refund the tax manually—they aren't legally allowed to. You must contact HMRC:

1. Log into your Personal Tax Account on the Gov.uk app.
2. Click on "PAYE Income Tax". Check your estimated income for the year. If it's vastly wrong, update it.
3. If you can't fix it on the app, call HMRC on 0300 200 3300. Have your National Insurance number and your employer's PAYE reference number (found on your payslip) ready.
4. Tell the agent you are on the wrong tax code. They will issue an electronic P6 notice to your employer.

On your very next payday, the payroll software will process the new code, recalculate your entire year's earnings, and issue the refund as a negative tax deduction, massively boosting your take-home pay.

Step 3: The End-of-Year Fix (The P800)

If you don't realize you've been overtaxed until the tax year finishes on April 5th, you cannot get the refund through your employer anymore. The tax year is closed.

However, you don't need to panic. Every summer (usually between June and September), HMRC's computers run an automated sweep of every taxpayer in the country. If the computer sees that you paid more tax than you owed based on your final P60, it automatically generates a P800 Tax Calculation letter.

HMRC will post this letter to your home address. It will tell you exactly how much you are owed. You can then log into the HMRC website and request the money be transferred directly to your bank account, which usually takes 3 to 5 working days.

Step 4: Claiming back previous years

What if you find an old payslip from 3 years ago and realize you were overtaxed? You can still claim it back! You legally have 4 years from the end of the tax year in which the overpayment occurred to claim a refund.

To claim for a previous year, you cannot rely on the automated P800 sweep. You must actively contact HMRC. You can do this by calling them, or by filling out a postal form (P50) if you have stopped working.

Frequently Asked Questions