Many people in the UK overpay tax each year — and don’t even realise they’re owed money back. Whether you’ve recently retired, taken on part-time work, or had a change in income, you might be eligible for a tax refund in 2025.
Here’s a clear guide on what you can claim, how to check if you’re due a refund, and how to avoid common mistakes.
Who might be owed a tax refund?
You could be eligible for a refund if:
- You paid emergency tax when starting a new job or withdrawing a pension
- You had multiple jobs in a tax year
- You stopped working before the end of the tax year
- You overpaid tax on a pension lump sum
- You paid tax on work expenses (uniform, travel, etc.)
Many retirees, part-time workers, or those drawing down pensions miss out on refunds they’re entitled to.
Common tax refund situations in 2025
1. Emergency tax on pensions
If you made a flexible pension withdrawal (e.g. drawdown or lump sum), HMRC may have taxed it as if you’ll take that amount monthly. That often results in an overpayment.
💡 Read more: Should you take your pension as a lump sum or regular income?
2. Early retirement or redundancy
If you retired part-way through the tax year, HMRC may have assumed full-year earnings and overcharged you. A refund could be due once your actual income is recalculated.
3. Work-related expense refunds
You can claim for certain job expenses, such as:
- Cleaning or replacing uniforms
- Work-from-home allowance (even part-year)
- Professional memberships
You may be able to backdate claims for up to four tax years.
How to check if you’re owed a refund
The easiest way to check is by logging into your Personal Tax Account with HMRC:
👉 https://www.gov.uk/personal-tax-account
You’ll be able to:
- See your income and tax paid
- Claim tax refunds
- View pension withdrawal tax
Alternatively, HMRC will send you a P800 tax calculation by post if they spot an overpayment — usually by September after the tax year ends.
How to claim your tax refund in 2025
- Log in to your HMRC Personal Tax Account
- Follow the steps to claim your refund online
- Refunds are usually paid within 2–4 weeks
If you’ve had a pension overtaxed due to a large withdrawal, use one of these forms:
- P55 (if you’re not withdrawing the full pension)
- P53Z (if you’ve withdrawn your whole pension and still have other income)
- P50Z (if you’ve withdrawn your whole pension and have no other income)
💡 More details at gov.uk: https://www.gov.uk/claim-tax-refund
Watch out for scams
Be cautious of texts, emails, or phone calls claiming you’re owed a tax refund. HMRC never asks for your bank details by text or email. Always go directly to gov.uk to check.
Final thoughts
If your finances changed in 2024 or early 2025, don’t assume HMRC got your tax right. You could be due a refund — especially if you’ve taken a pension lump sum, changed jobs, or reduced your hours.
Take 15 minutes to log into your HMRC account and check. It’s your money — and getting it back could make a real difference.
