This question and answer briefing focuses on what taxpayers need to do to make sure that they can recover Income Tax or Capital Gains Tax from previous years that they are due.
Most people claim what they are entitled to in the year they make their Self Assessment tax return, or pay their Income Tax through PAYE. However, if your circumstances change you may be entitled to claim back tax you have already paid in earlier years.
The 2008 Budget changed how HM Revenue & Customs (HMRC) check whether someone’s tax is correct, and introduced new safeguards for customers. This was done to make the compliance checks more consistent, clear and uniform across a number of taxes. For more information about the new compliance checks please see 'How we check your tax'.
As part of those changes HMRC introduced a standard limit of four years from the end of the tax year for making claims for repayments of tax. A repayment claim is where a taxpayer asks for tax to be refunded, usually because they are entitled to a specific relief from tax which they have not previously claimed.
HMRC also introduced a limit of four years for the department to issue tax assessments (except where a loss of tax has resulted from carelessness or has been done deliberately). A tax assessment is where the department asks a taxpayer to pay tax that has not been included in a return.
The previous limit for claims and assessments for Income Tax and Capital Gains Tax was five years from the 31 January immediately following the tax year. So the time limit for the 2003-04 tax year was 31 January 2010.
A number of different possible time limits were put forward in consultation to seek views from taxpayer representatives.
Four years strikes a balance between the certainty for taxpayers provided by shorter time limits, and the need for HMRC to have sufficient time from receipt of a return to check the tax position.
There are two different start dates for the time limits:
Table one sets out the new deadlines for making claims that will apply to Self Assessment taxpayers.
Tax year you want to claim tax back |
Deadline to make your claim |
|---|---|
2006-07 year |
5 April 2011 |
2007-08 year |
5 April 2012 |
2008-09 year |
5 April 2013 |
Table two sets out the deadlines for making claims that will apply to people who are not Self Assessment taxpayers.
Tax year you want to claim tax back |
Deadline to make your claim |
|---|---|
2004-05 year |
31 January 2011 |
2005-06 year |
31 January 2012 |
2006-07 year |
31 March 2012 |
2007-08 year |
5 April 2012 |
2008-09 year |
5 April 2013 |
Some people will pay tax through both the PAYE and Self Assessment systems – for example employees with income from investments, or employees who need to declare liability to Capital Gains Tax.
If you are required to make a Self Assessment tax return then the Self Assessment deadlines in Table one will apply for any repayment claim that you make, regardless of whether you also pay tax through PAYE.
This is to allow PAYE taxpayers and other taxpayers who have little contact with the tax system even more time to find out about the new limits.
If you wish to make a tax repayment claim for a year when you were not required to make a Self Assessment return, then you are not a Self Assessment taxpayer for that year, and the deadline will be the date for the relevant tax year in Table two.
For example if you wish to make a tax claim for 2004-05 tax year, but you were not required to complete a Self Assessment tax return for that year, you will be treated as being outside the Self Assessment system for that year and the deadline for making your claim will be 31 January 2011.
Even if you are no longer a Self Assessment taxpayer, if you wish to make a tax repayment claim for a year where you made a Self Assessment return, then the deadline will be the date for the relevant tax year in Table one.
For example if you were required to complete a Self Assessment return for the 2005-06 tax year, and you now wish to make a repayment claim for that year, you will be treated as a Self Assessment taxpayer and it is now too late to make a claim for 2005-06.
If you do not pay tax because your income is below the tax threshold, but you wish to make a claim for a tax repayment (for example for tax you have paid on bank or building society interest) then you will normally be treated as being outside the Self Assessment system and the deadlines for making your claim are in Table two.
However, if you were previously required to make a Self Assessment return for the year for which you wish to make a claim, the deadlines in Table one will apply.
Some pensioners are paying tax on their bank or building society interest when they shouldn’t be, because their income is below the tax threshold.
If you are in this position you can register to receive your interest tax free, and can claim this tax back – see Getting tax-free interest on savings or claiming tax back
Pensioners who are not paying tax because their income is below the tax threshold will normally be treated as being outside the Self Assessment system, which means the dates in Table two will apply to any claims made.
However, if you were previously required to make a Self Assessment return for the year for which you wish to make a claim, the deadlines in Table one will apply.
You can find out how and when to claim a refund using the link below.
Correcting your tax return and claiming any refund
You can find out how and when to claim a refund using the link below.
Reclaiming tax if you've overpaid through your job
HMRC will be targeting publicity at those likely to be able to make a claim. HMRC’s new PAYE service will mean that many repayments can be made without a formal claim. The time limits for people outside Self Assessment will not be reduced until 1 April 2012, to give time for publicity and new systems to take effect.
No – if you have overpaid your National Insurance contributions please check what you need to do to reclaim what you are owed. Apply to:
HM Revenue & Customs
National Insurance Contributions Office
Refunds Group
Benton Park View
Newcastle upon Tyne
NE98 1ZZ
Tell them why you think you have paid too much and enclose any evidence to support your claim, for example pay slips and P60s.
