London does not have its own tax refund system — the UK government handles all income tax refunds

If you live or work in London and are owed a tax refund, you claim it through HM Revenue & Customs (HMRC), the UK's national tax authority. London has no separate city or regional tax system that would generate its own refunds. Any overpayment of income tax, National Insurance, or other taxes goes back through HMRC, not through a London-specific office.

This matters because it means you cannot contact a London council or local government body to process a tax refund. You will be dealing with HMRC directly, whether you claim online, by post, or through a tax professional. The process is the same whether you live in London, Manchester, or Edinburgh.

Key Takeaways

  • HMRC, the UK national tax authority, handles all income tax refunds for people in London — there is no London-specific tax refund system.
  • You can claim a refund online through your HMRC account, by post using form P87, or through a tax professional if you are unsure whether you are owed money.
  • Common reasons for refunds include overpayment through PAYE, unused personal allowance, or working abroad for part of the tax year.
  • HMRC typically processes refunds within four to six weeks of receiving a valid claim, though this can vary depending on how you submit it.

Who actually processes tax refunds in the UK

HMRC is a department of the UK government responsible for collecting taxes and processing refunds across the entire country. When you overpay tax, HMRC holds that money and returns it when you claim it or when they identify the overpayment themselves. There is no London equivalent — the city does not run a parallel tax system.

London councils do collect council tax (a property tax), but that is separate from income tax. If you have overpaid council tax, you would claim that refund from your local council, not from HMRC. The two systems are completely different.

How to claim a tax refund through HMRC

The fastest route is to claim online through your personal tax account on the HMRC website. You will need a Government Gateway login — if you do not have one, you can create it during the process. Log in, check your tax calculation, and if HMRC shows you have overpaid, you can request a refund directly. This usually takes four to six weeks.

If you do not have an online account or prefer to claim by post, read form P87 from the HMRC website and send it to the address on the form along with supporting documents (payslips, P45s, or proof of income). This route takes longer — typically six to eight weeks — because HMRC has to process the form manually.

If you are self-employed, have multiple jobs, or are unsure whether you are owed money, you can contact HMRC directly by phone or ask a tax professional to review your situation. A tax professional can also submit a claim on your behalf, though you will pay a fee for this service.

Common reasons you might be owed a refund

The most common reason is overpayment through PAYE (Pay As You Earn). If your employer deducted too much tax from your wages, you are owed the difference. This often happens if you changed jobs mid-year, worked part-time, or had a second job that your employer did not know about.

Another reason is unused personal allowance. Every tax year, you get a personal allowance — the amount you can earn before you pay income tax. If you earned less than your allowance (for example, if you were unemployed for part of the year), you may have paid tax you did not owe.

If you worked abroad for part of the tax year, you may be owed a refund on the portion of the year you were not in the UK. Similarly, if you paid tax on income that was actually covered by a tax-free allowance (such as certain benefits or savings interest), you can claim that back.

What documents you will need

To claim a refund, have these documents ready: your National Insurance number (on your payslip or National Insurance card), your postcode, and proof of income for the tax year in question. Proof of income usually means payslips, a P45 (if you left a job), a P60 (end-of-year statement from your employer), or a Self Assessment tax return if you are self-employed.

If you are claiming because you worked abroad, bring evidence of the dates you were out of the UK. If you are claiming on unused allowance, bring payslips showing your earnings. Keep these documents even after you submit your claim — HMRC may ask for them if they need to verify your information.

How long refunds take and how you receive the money

HMRC typically refunds money within four to six weeks of receiving a valid claim through your online account. If you claim by post, allow six to eight weeks. During busy periods (such as after the Self Assessment important date in January), refunds can take longer.

The refund goes directly into the bank account you provide. HMRC will not send a cheque unless you specifically request one, and cheques take longer to process. Make sure the account details you give are correct — if HMRC sends money to the wrong account, you will have to contact your bank to recover it.

What to do if you think HMRC made a mistake

If you submitted a claim and HMRC refused it or offered you less than you expected, you can ask them to reconsider. Contact HMRC with the reference number from your claim and explain why you think the decision was wrong. Include any new evidence you have.

If HMRC still disagrees, you can appeal to the Tax Tribunal, an independent body that reviews tax disputes. This is free and you do not need a lawyer, though many people find it helpful to have a tax professional represent them. The process takes several months, so only pursue this if you are confident HMRC made an error.

Frequently Asked Questions

Can I claim a refund if I live in London but work elsewhere in the UK?

Yes. Your location does not matter — HMRC processes refunds the same way regardless of where you live or work in the UK. Claim through your HMRC account or by post using form P87.

What if I moved to London from abroad and paid UK tax?

You can claim a refund on any UK tax you overpaid. You will need to prove your UK residency status and provide evidence of your income. Contact HMRC directly if you are unsure whether you count as a UK resident for tax purposes, as this affects your refund entitlement.

Do I have to pay someone to help me claim a refund?

No. Claiming through your HMRC account is free. You only pay if you choose to use a tax professional or accountant to submit the claim for you. Many people claim successfully on their own.

Can London councils help me claim a tax refund?

No. London councils handle council tax only, not income tax. For income tax refunds, contact HMRC directly. If you need help understanding the process, Citizens information offers free guidance on tax matters.

What if HMRC says I owe tax instead of owing me a refund?

If HMRC's calculation shows you underpaid tax, they will tell you how much you owe and when to pay it. You can ask them to recalculate if you think they made a mistake, or you can appeal. Do not ignore a bill from HMRC — contact them to discuss a payment plan if you cannot pay in full.