To work out accurately if you have paid too much tax, and whether or not you are due a repayment, you will have to work out your tax liability and compare this to how much you have paid.
To start with you will need to gather all the information about your income and tax position. This may include the following documents for the tax year:
- P60 and/or P45 from an employer
- P11D from an employer
- Details of taxable state benefits received
- Bank statements or certificates of tax deducted
- Building society statements or certificates of tax deducted
- Dividend certificates
- Details of rental income and expenses.
For more information on the types of records and documents that you need to work out your income and tax position, go to the GOV.UK website .
We set out an example tax calculation and explain the steps involved in calculating your tax liability on our page ‘How do I work out my tax? ’
To work out your tax liability, you first need to calculate your taxable income.
You must include the gross amounts in your calculation, that is, the amounts before tax is taken off.
You may be able to deduct certain expenses or claim allowances against your gross taxable income.
You need to calculate your tax liability using the correct rates of tax. and you can then deduct the tax you have already paid, for example, under PAYE, to work out your tax overpayment or underpayment.
HMRC have a ‘tax checker ’ tool on their website, which enables you to find out if you are due a repayment of tax.
This is a useful tool for you if your tax position is straightforward. It may not give an accurate result if your tax position is more complex – for example, if you are entitled to the age-related personal allowance.
If you do use the HMRC tool, you must read the guidance carefully first. This explains who can use the tax checker tool and what information to gather together.
If you need more information on how to work out your tax, you may find our other guides helpful: