Overpayment Relief from HMRC

If you have paid too much tax, perhaps because you made an error on a return, or because you believe a sum determined by HMRC as being due is incorrect, there is a general rule that a refund cannot be claimed more than 4 years after the end of the relevant tax year. For example, a refund claim in relation to the 2021/22 tax year would need to be made by 5 April 2026.

However, if you do believe you’ve paid too much tax in the past, you may be able to claim it back through a mechanism known as “overpayment relief”. This is a formal claim made to HMRC, and it serves as a vital safety net. Understandably, HMRC checks on any such claims are thorough and a number get rejected.

HMRC has recently updated its guidance to help individuals successfully claim back any tax monies owed. In particular, overpayment relief claims must be made in writing and must state:

• that the claim is for overpayment relief

• the tax year for which the claimant thinks they have paid too much tax, or too much tax has been assessed

• why too much tax has been paid or assessed

• how much has been overpaid or over-assessed

• if an appeal has, or has not, been previously made for the same payment or assessment (the term “appeal” must be used)

The claim must also include a declaration saying the details given are correct and complete to the best of the information and belief of the person making the claim and it must be signed by them personally.

Undertaking the right steps in the right order is critical and we would be pleased to support with this, should you believe you have paid too much tax.