Tax refunds in London follow the same rules as the rest of the UK, but the process depends on which tax authority handles your case and why you're owed money

If you've paid too much tax—whether through PAYE (Pay As You Earn), self-employment, or a previous job—HM Revenue & Customs (HMRC) will refund the difference. The location where you live doesn't change how the refund works, but it does affect how long it takes and which office processes your claim. London has multiple HMRC offices, and knowing which one handles your case speeds things up.

Most London residents get refunds through their tax code being corrected for the next tax year, which means no payment arrives but you pay less tax going forward. If you need the money now, you'll need to request a direct refund from HMRC instead of waiting for the adjustment to take effect.

Key Takeaways

  • HMRC processes all UK tax refunds the same way regardless of where you live, but London has several regional offices that handle different postcodes.
  • Most refunds come as a tax code adjustment rather than a cash payment, meaning you'll pay less tax next year instead of receiving money now.
  • You can request a direct refund by contacting HMRC through their online portal, by phone, or by post with supporting documents.
  • Refunds typically take 4 to 8 weeks from the date HMRC receives your claim, though complex cases can take longer.
  • If you've left the UK, you may face additional checks before HMRC releases the money, and some refunds cannot be paid to overseas bank accounts.

When HMRC owes you money in London

You're owed a refund if you've paid more tax than you should have. Common reasons include: you left a job partway through the tax year and your employer didn't adjust your tax code; you worked two jobs and paid tax twice on the same income; you claimed expenses as self-employed but didn't report them; or you're a student or low earner who paid tax but shouldn't have.

The tax year in the UK runs from 6 April to 5 April the following year. HMRC calculates what you owe at the end of each tax year and compares it to what you've already paid. If you've overpaid, they owe you the difference. This is separate from refunds on goods (like VAT refunds for visitors) or refunds from employers—this is strictly about income tax.

How to request a refund from HMRC

The fastest route is through your HMRC online account, which you can access if you're registered for Self Assessment or have a Personal Tax Account. Log in, go to "Income Tax," and look for "Claim a refund." You'll need to explain why you think you've overpaid and provide documents like P45s (if you left a job), payslips, or proof of expenses. HMRC will review your claim and tell you within a few weeks whether they agree.

If you don't have an online account, you can call HMRC's Income Tax helpline at 0300 200 3300 (Monday to Friday, 8am to 6pm). They'll ask you the same questions and may ask you to post documents afterward. For complex cases—such as if you've worked abroad or have multiple sources of income—posting a letter to your local HMRC office with copies of all documents is often clearer than a phone call, because it creates a paper trail.

London residents should send claims to the HMRC office that covers their postcode. The main London offices are in Croydon (handles most London postcodes), Nottingham (handles some), and Belfast (handles others). Your postcode determines which office processes your case, so HMRC will route your letter correctly if you're unsure.

Timeline for receiving your refund

Once HMRC receives your claim, they typically take 4 to 8 weeks to process it. This assumes your claim is straightforward—you've provided all documents, your records match HMRC's records, and there are no flags for further investigation. If HMRC needs to verify information with your employer or check your Self Assessment return, the timeline extends to 8 to 12 weeks.

The refund itself arrives by bank transfer to the account you provide. HMRC will not send a cheque unless you specifically request one, and cheques take longer (2 to 3 weeks by post after approval). If you've moved house or changed banks, update your details with HMRC before submitting your claim, because a refund sent to a closed account will be returned and the process restarts.

What happens if you've left the UK

If you no longer live in the UK but worked here and overpaid tax, you can still claim a refund. However, HMRC treats non-resident claims differently. They may ask for proof that you left the country (such as a visa cancellation or departure record) and may require additional documentation to confirm your identity and address.

Some refunds cannot be paid to overseas bank accounts. If your bank is outside the UK, HMRC may offer to send a cheque to a UK address instead, or they may hold the refund until you provide a UK account. This is a fraud prevention measure. If you have a UK bank account still open, use that. If not, ask HMRC what payment methods they can use for your situation—don't assume they'll refuse.

What to do if HMRC rejects your claim

If HMRC says you don't have a refund coming, they'll explain why in their letter. Common reasons are: your tax code was correct and you didn't overpay; you claimed expenses that don't match their records; or the time limit for claiming has passed (usually 4 years from the end of the tax year in which you overpaid). Read their explanation carefully, because it tells you what to challenge if you disagree.

If you think HMRC made a mistake, you can ask them to reconsider. Write to the office that rejected your claim with new evidence—such as a corrected payslip, a letter from your employer, or a receipt you didn't include the first time. If they reject you again and you still disagree, you can appeal to the Tax Tribunal, which is a free independent service. The process takes several months, so only pursue this if you're confident HMRC made an error.

Documents you'll need to gather

The documents you need depend on why you're claiming a refund. If you left a job, you'll need your P45 (the form your employer gives you when you leave). If you worked two jobs, you'll need payslips from both. If you're self-employed, you'll need receipts or invoices for expenses you claimed. If you're a student, you'll need proof of your student status and your income for that tax year.

Keep originals and send copies to HMRC. If you're posting documents, use Royal Mail Special Delivery so you have proof of delivery. Take photos or scans of everything before you send it, in case HMRC loses the post (it's rare, but it happens). Write your name, date of birth, and National Insurance number on every page you send, so HMRC can match it to your file.

Frequently Asked Questions

How do I know if HMRC owes me money?

Check your most recent P60 (annual tax statement from your employer) or Self Assessment tax return. If the tax paid is higher than the tax owed, you've overpaid. You can also log into your HMRC online account and check your tax calculation. If you're unsure, contact HMRC and they'll tell you whether a refund is due.

Can I claim a refund for a tax year from several years ago?

Yes, but only going back 4 years from the end of the tax year in which you overpaid. For example, if you overpaid in the 2019–2020 tax year, you can claim until 5 April 2024. After that, HMRC will reject the claim. Check your records now if you think you overpaid in previous years.

What if my employer won't give me a P45?

Contact HMRC and tell them your employer has refused. HMRC can request the P45 from your employer directly, or they can work with the information they have on file. You'll need to provide other proof of your employment, such as payslips or a letter from your employer confirming your dates and salary.

Will I get interest on my refund?

HMRC does not pay interest on overpaid tax in most cases. The refund is straightforward the amount you overpaid, with no additional compensation. The exception is if HMRC took an unusually long time to process your claim due to their error, but you would need to ask them to consider this.

Can I claim a refund if I'm not a UK citizen?

Yes. Your citizenship doesn't affect your right to a tax refund. You'll need a National Insurance number and proof of your UK address during the tax year you're claiming for. If you've since moved abroad, provide your current address and be prepared for additional identity checks.