Claiming back tax or National Insurance
In this section:
- Claiming back tax if you've had too much deducted from your pension
- Reclaiming tax if you've overpaid through your job
- Tax return corrections and refunds
- Claiming back overpaid National Insurance contributions
- Getting tax-free interest on savings or claiming tax back
Claiming back tax if you've had too much deducted from your pension
If you pay tax on a company, personal (including retirement annuity) or State Pension through PAYE (Pay As You Earn - the system used by employers and pension providers to deduct tax from your wages or pension) there are several reasons why you might end up accidentally paying too much. If you’ve overpaid tax, you can claim it back.
Reasons why you might have overpaid through your pension
Common reasons why you may have overpaid include:
- your pension provider has used the wrong tax code by mistake or they don't have the right personal information for you
- your taxable State Benefits/other income has reduced and we don't know about it so haven't asked your pension provider to adjust your tax code
- the amount of annual State Pension on your PAYE Coding Notice is wrong
- you have multiple tax codes (from multiple pensions or pension and employment income) - for example an error can occur if you haven't used up all your allowances on your first tax code but your other tax codes assume that you have
- overpayments of tax on retirement annuities before April 2007 (where 22 per cent tax was taken off before you received the pension but you were a non-taxpayer or 10 per cent taxpayer; see our guide on retirement annuities below)
- overpayments on pension lump sums (also known as 'trivial commutation') which are taken instead of a small monthly pension
If you’ve overpaid tax you must claim it back no later than 31 January five years after the end of the tax year (5 April) in which the overpayment was made. For example, a claim for the tax year 2002-03 which ended on 5 April 2003 must be made by 31 January 2009. Read the later sections to find out how to make a claim.
More on how retirement annuities are taxed
Find out more about options when you take your personal pension and how lump sums are taxed
Checking your tax code if you're in PAYE
If you're employed, or your pension or annuity is dealt with through PAYE you can look at your latest PAYE Coding Notice (form P2 - usually sent to you at the start of the tax year and re-issued if something changes) to check what type and amount of tax-free allowances you get - you pay tax on anything above your tax allowances. The PAYE Coding Notice confirms your tax code and this should match the one shown on your employment or pension payslip.
If you have several different pensions taxed through PAYE, or you work and get one or more pensions, you should get more than one PAYE Coding Notice - in this case it's especially important to check them all.
In certain circumstances, you may not get a PAYE Coding Notice every year - for example if you retire early. If you are concerned that you may be paying too much tax but don't have a document that you can check please contact your Tax Office.
Read our related guides to find out what to look for.
Understand your P2 Coding Notice
Check multiple PAYE slips and tax codes
Read about allowances that can reduce your Income Tax
Claiming a refund through PAYE
If you've just retired and have no pension income due
If you've just retired and don't expect to receive any other sort of taxable income (this includes pension income) at all during the tax year you should complete form P50 'Claiming tax back when you've stopped working' and send it to your Tax Office along with Part 2 and Part 3 of your P45 - a form which you get from your employer when you stop working for them. Keep part 1A as a record of income. We will then send any refund due to you in the post.
Download form P50 'Claiming tax back when you've stopped working'
Find out more about PAYE form P45
If you receive a pension or retirement annuity through PAYE
If you are receiving taxable pension income (including a retirement annuity) through PAYE and you find an error within the current tax year, contact your Tax Office. They will send a revised PAYE Coding Notice to your pension provider who will adjust the tax code to alter any further payments for that year. The overpayment will be corrected automatically by your pension provider who will refund the tax in the next payment. You may pay less tax the following month or if it's a large amount you'll get a refund (marked R on your payslip).
Making a claim for previous tax years
If you're claiming refunds for earlier years, you can make a claim on form R40. You can download this form below or ask your Tax Office to send you one. You'll need one for each year you're claiming for. Complete the form(s) with the details of your income for each year and send it back to your Tax Office. The claim form help notes will help you fill in the form accurately. Do not send vouchers, certificates or any other documents with your form.
The time limit for making a claim is no later than 31 January five years after the end of the tax year (5 April) in which the overpayment was made. For example, a claim for the tax year 2002-03 ending 5 April 2003 must be made by 31 January 2009.
Download form R40 'Tax Repayment'
Claiming a refund on a retirement annuity
Since April 2007, income from retirement annuities has been subject to tax through the PAYE system - if you think you've overpaid in this way see above 'Claiming a refund through PAYE'.
However, before April 2007 retirement annuities were taxed at 22 per cent unless you completed a form R89 to request otherwise (or form R86 for a joint annuity). If you didn't complete one of these forms you may have overpaid if you were a non-taxpayer or only paid 10 per cent tax in those years.
The forms R89/R86 are no longer in use (except for purchased annuities), but if you've overpaid you'll be able to claim some tax back (see above for time limits) using form R40 for any overpaid tax until April 2007.
More on how retirement annuities are taxed
Download form R40 'Tax Repayment' (PDF 97K)
Claiming a refund on a pension lump sum ('trivial commutation')
If your contributions into a pension fund would result in you receiving a small pension of a few thousand pounds a year, you may choose to take it as a lump sum rather than a small amount each month. This is called a 'trivial commutation'. If you've received one or more lump sum payments it's possible that the tax you paid was at a higher rate than you were due to pay over the tax year.
If you are a Self Assessment customer you should declare any lump sum payments on your Self Assessment return. If you are due a refund, we'll pay it directly into your bank or building society account.
Otherwise if you want to apply for a refund you'll need to:
- ask your Tax Office for form P53
- complete the form with details of your estimated income for the year
- send it to your Tax Office with Part 2 and Part 3 of your form P45
- keep Part 1A as a record of your income
We'll send any refund due to you in the post.
Because this refund is based on estimated figures we will have to check it at the end of the year, so we'll send you another P53 after 5 April so you can tell us the actual details of your income.
More details on overpaying tax on a lump sum
Documents you'll need to make a claim
When you're claiming tax back (except when you're claiming back tax through form R40) you'll need to include any relevant documents about your income during the tax year for which you're claiming, such as:
- payslips
- forms P60, P45
- information about your employment and benefit history
- information about your pensions and other income
How you'll get your refund
We'll normally send you a payable order by post but you can tell us to pay the refund directly into your bank or building society account. You can also nominate someone else to receive the refund and we can pay them by post or directly into their bank or building society account.
There are sections about how you would like us to pay your tax refund on all the relevant forms.
Claiming tax back for someone else
If someone's appointed you to manage their financial affairs, or if you're a spouse/civil partner or relative of someone who has difficulty making a claim or has died, you may be able to claim tax back for them. Get in touch with their usual Tax Office or the HMRC Office that deals with repayment claims.
How to deal with HM Revenue & Customs for someone else
Claiming back tax on behalf of someone who has died
Contact the Repayment Claim office
More useful links
Why it's important to fill in your Pension Enquiry form
How to correct mistakes in your income tax
Find out about reducing your Income Tax through allowances
Tax allowances at State Pension age
More about reclaiming overpaid tax from the Low Incomes Tax Reform Group
