Wouldn’t it be so much easier (and make so much more sense) if HMRC just automatically refunded you for overpaid tax? In truth, a lot of people think that’s the case. ‘Do you automatically get a tax rebate?’ is a question we get asked a lot. And the answer is, sort of. 

A tax rebate refers to the refund of overpaying to HMRC, typically through PAYE (Pay As You Earn), self-assessment, or other tax deductions. And while many people assume that tax rebates are automatic, in reality, HMRC only issues automatic refunds under certain conditions. In others, it’s up to the taxpayer to figure it out. 

Either way, knowing when you might be eligible for a rebate means you don’t miss out on money you’re owed. So with that said, let’s get the ball rolling.. 

When are tax rebates issued automatically?

As of 31 May 2024, HMRC has changed the way it deals with refunds. In the past, it would issue certain repayments automatically. Now, if your P800 calculation shows that you are due a tax refund, you may have to claim directly via your government gateway account in order to receive it. 

We explain more about how to do this in our guide to claiming a tax rebate. But for now, it’s worth knowing the situations when tax rebates are issued ‘automatically’: 

  • If your PAYE (pay as you earn) is connected to an incorrect tax code issued by HMRC, or your employer applies the wrong one. 
  • Self-assessment tax returns, particularly concerning your Payments on Account. If your actual takings are less than the predicted Payment on Account amount, and you paid it without any reduction, then you likely paid too much tax. 
  • You were on an emergency tax code when you started a new job. 
  • You have more than one job and you lose some of your personal allowance entitlement because the second job applies Basic Rate tax to your entire salary. 
  • Work expenses tax reliefs and allowances. 

It usually takes somewhere between five days and eight weeks to receive your tax refund. It will depend on a number of factors, including the system involved (for example by PAYE or self assessment), whether you applied online or by paper, and whether HMRC makes any security checks during the process. 

When you need to apply for a tax rebate

Sometimes, HMRC will tell you that you’ve overpaid in tax and all you have to do is claim it back (see above). Other times, it’s up to you to tell them. We call this manual tax rebates; and if you need to manually apply for a tax rebate, it's typically in situations such as: 

  • Claiming work-related expenses (like uniforms, travel costs, or tools) 
  • Overpayments due to job changes 
  • Maternity leave or redundancy 
  • Correcting errors in tax codes 

In these cases, submitting a manual claim is the best way to get back what you’re owed. As for how to check if you’re eligible for a tax rebate, you can use online tools from tax authorities to check whether you may be entitled to a tax rebate. We also have a range of tax calculators that are free to use that will give you an estimate of what you could be owed:

Tax Rebate Calculator

CIS Tax Rebate Calculator 

Alternatively, reach out to the tax authority directly; they can help you check and guide you through the process. Whatever you do, make sure to keep detailed records of your payslips, tax records, expenses etc. You never know when you might need them! 

Check out our 'how to works' page for more information on claiming a tax rebate. 

How long does it take to get a tax rebate?

Everything moves pretty quickly once HMRC have approved the amount. In most cases, you can get your refund in as little as five working days. As for how long it takes HMRC to process a tax return, well, it really depends. 

‘Automatic’ tax rebates typically take around four to eight weeks to process, as HMRC handles these based on the information they already have. For manual claims, like self-assessment or claiming back overpaid tax from previous years, it can take eight to 10 weeks, depending on the complexity of your situation. 

That said, this isn’t set in stone.. There are factors that can delay your refund, like submitting incorrect information, a backlog on HMRC’s side, missing documents, or particularly complicated tax situations. If you want to speed up the process (or, at the very least, keep it on track), make sure you submit accurate, complete records and respond quickly to requests. 

For more info on timescales and how we can help take the entire situation off your hands, you can check out our advice on how long a tax refund takes. 

How to check your tax status

Whether you're self-employed, employed, or receiving benefits, it’s important to keep track of your tax status to make sure everything is as it should be – and luckily, it’s pretty easy to do. 

Step one: Log into your HMRC online account

Start by accessing your HMRC online account, which gives you a clear overview of your tax records and status, including any notifications from HMRC. 

Step two: Review your tax code and PAYE records

Check your current tax code, as it determines the amount of tax you're required to pay. Also, check your PAYE records, which will show how much tax has already been deducted from your income by your employer. If the records look incorrect or outdated, you can request an update or explain discrepancies via your online account. 

Step three: Identify any potential overpayments

Look for any discrepancies that might indicate overpayments or errors in your tax return, as these can often be rectified to get you a refund or adjust future payments. 

Pretty straightforward, right? If you do think you’ve been overtaxed and are feeling overwhelmed by the thought of sorting it out, you can also reach out to us and we’ll be happy to do the hard work for you. That’s what we’re here for, after all. 

Tips to avoid overpaying tax in the future

We could share some scary stats on just how many people in the UK are overpaying on their tax; and how many are so confused by the process that they don’t do anything about it. Instead, we’re going to share some tips on how to not be one of those adults and avoid overpaying tax in the future. 

✔ Check

Keep checking your tax code to make sure it reflects your actual situation. For example, if you’ve had a change in employment or experienced a significant life event (like marriage or retirement), your tax code may need to be updated. Take your eye off it and you find yourself out of pocket.

✔ Record

Keep a detailed record of your expenses throughout the year, especially if you're self-employed or have work-related expenses that can be claimed. This can include receipts, invoices, and bank statements. Detailed records will help you claim back as much as possible during tax season, preventing you from missing out on deductions that could reduce your taxable income.

✔ Review

Regularly review your income and tax payments. This way, you can spot any discrepancies early on and take action. 

✔ Get in touch with us

One final tip – contact RIFT. We can handle the entire tax refund process for you from start to finish. We'll even deal with HMRC for you. You'll never have to phone them or reply to their letters yourself; and after you’ve received your refund, you can call us any time with questions about your tax. We’ll keep you on the right side of the taxman. 

Claim your tax rebate today.