Tax refunds in London follow the same UK system as the rest of England

London residents get tax refunds through HMRC (Her Majesty's Revenue and Customs), the same body that handles tax for all of the UK. There is no separate London tax system or London-specific refund process. If you have overpaid income tax, National Insurance, or other taxes during the tax year, HMRC will refund the difference — but the timeline and method depend on how you paid and how you file your return.

The tax year in the UK runs from 6 April to 5 April the following year. Most people do not need to file a return at all; HMRC calculates what you owe based on information from your employer or pension provider. If you do need to file — because you are self-employed, have multiple jobs, or have other income — you file through Self Assessment, and any refund comes after HMRC processes your return.

If you are a London resident but work outside the UK, or you have moved to London from another country, your tax position may be different. The key question is your UK residency status for tax purposes, not where in the UK you live.

Key Takeaways

  • HMRC handles all UK tax refunds the same way regardless of location; London has no separate tax authority or refund process.
  • Most employees receive refunds automatically through their employer's payroll system without filing a return.
  • Self-employed people and those with multiple income sources file through Self Assessment and receive refunds after HMRC processes the return.
  • Refunds typically arrive within 4 to 8 weeks of HMRC receiving a valid Self Assessment return, though this varies.
  • You can check the status of a refund through your HMRC online account or by calling the Self Assessment helpline.

How HMRC refunds work for employees in London

If you are employed and work in London, your employer deducts tax from your pay each month through PAYE (Pay As You Earn). HMRC uses information your employer sends to calculate whether you have paid too much or too little tax for the year. Most of the time, the system gets it right and you owe nothing or receive a small refund.

If you have overpaid — for example, because you left a job partway through the year, worked part-time, or had personal allowance unused — HMRC will send you a refund automatically. You do not need to ask for it or file a return. The refund goes to the bank account HMRC has on file, usually the one your employer uses for salary payments. This process can take 4 to 8 weeks after the end of the tax year (5 April), though some refunds arrive faster.

If you think you have overpaid but have not received a refund by mid-summer, you can log into your HMRC online account to check the status. You will need your National Insurance number and a password or biometric login. If the account shows no refund is due, you may need to contact HMRC directly to explain your situation.

Self Assessment refunds for self-employed and multiple-income earners

If you are self-employed, a landlord, or have income from multiple sources, you file a Self Assessment tax return. This return tells HMRC exactly what you earned and what expenses or allowances you can claim. Once HMRC processes your return, it calculates whether you owe tax or are due a refund.

You can file your Self Assessment return online through the HMRC website from 6 April onwards. The important date to file is 31 January following the end of the tax year — so for the 2023–24 tax year, the important date is 31 January 2025. If you file online by this date, HMRC has until 31 December to send you a refund. If you file late, HMRC can take longer to process your return and may charge a penalty.

Refunds from Self Assessment typically arrive 4 to 8 weeks after HMRC receives your return, but this varies depending on how busy HMRC is and whether your return needs checking. You can track the status through your HMRC online account. If your refund does not arrive within the expected timeframe, contact HMRC using the phone number on your tax return paperwork or through your online account.

What to do if you think you have overpaid tax in London

Start by checking your tax code. Your tax code appears on your payslip and tells your employer how much tax to deduct. If your code is wrong — for example, if it does not account for a second job or a pension — you may be paying too much. You can check your code through your HMRC online account or ask your employer.

If you are employed and believe you have overpaid, contact HMRC directly. You can call the PAYE Income Tax helpline (the number is on your payslip or tax return) or use your online account to report the issue. Have your National Insurance number and recent payslips ready. HMRC will review your record and either confirm a refund is on the way or explain why no refund is due.

If you are self-employed or have not filed a Self Assessment return yet, file one as soon as you can. Include all your income and claim all the expenses and allowances you are may have access to to. Once HMRC processes the return, any overpayment will be refunded automatically.

Refunds for tax paid on savings and investment income

If you have savings or investments, tax may have been deducted at source. For example, banks deduct tax from interest before paying it to you. If your total income is below your personal allowance, or if you are a non-taxpayer, you may be able to reclaim this tax.

To reclaim tax on savings interest, contact the bank or building society that paid the interest and ask them to stop deducting tax going forward. You can also claim back tax already deducted by filing a Self Assessment return or contacting HMRC directly. You will need to provide evidence of the tax deducted — usually a statement from the bank showing the gross interest and the tax taken.

If you receive dividends from shares or investments, similar rules explore. Tax is often deducted, but you may be able to reclaim it if your income is low enough. Again, file a Self Assessment return or contact HMRC to claim the refund.

Refunds if you have moved to or from London

If you have recently moved to London from another country, your tax position depends on your UK residency status. HMRC uses a Statutory Residence Test to decide whether you are a UK resident for tax purposes. If you are not a UK resident, you may not owe UK tax on income earned outside the UK, but you will owe tax on UK-sourced income like salary or rental income.

If you have moved away from London or the UK, you may be may have access to to a refund of tax paid while you were a UK resident. Contact HMRC and explain your situation. You will need to provide evidence of your move — such as a tenancy agreement, employment contract, or visa documentation — and file a final Self Assessment return covering the period you were in the UK.

If you are a non-resident working in London temporarily, you may be able to claim relief on tax paid. This depends on whether the UK has a tax treaty with your home country. Check the HMRC website for information about your specific country, or contact a tax adviser who specializes in expatriate taxation.

How long refunds take and what to do if yours is delayed

For PAYE refunds (employees), expect 4 to 8 weeks after the end of the tax year. For Self Assessment refunds, expect 4 to 8 weeks after HMRC receives your return. These are typical timescales, not guarantees. During busy periods — particularly January and February when many Self Assessment returns arrive — refunds can take longer.

If your refund has not arrived within 8 weeks, log into your HMRC online account to check the status. The account will show whether your return has been received, whether it is being processed, or whether HMRC needs more information from you. If the status is unclear, call the Self Assessment helpline or the PAYE Income Tax helpline (numbers are on your tax paperwork).

If HMRC has lost your refund or made an error, you can ask for compensation. HMRC has a complaints process; start by contacting the office that handled your return and explaining the issue. If you are not satisfied with the response, you can escalate to the Adjudicator's Office, which is independent of HMRC and can award compensation for poor service.

Frequently Asked Questions

Can I claim a refund if I worked in London for only part of the year?

Yes. If you left a job or started a new one partway through the tax year, you may have overpaid tax. HMRC will calculate this automatically if you are an employee. If you are self-employed, file a Self Assessment return covering the months you worked and claim any refund due.

Do I need to file a Self Assessment return if I only work as an employee in London?

No, unless your employer has not registered you for PAYE or you have other income (self-employment, rental income, dividends). If you are a straightforward employee, HMRC handles everything through your employer's payroll records.

What if I moved to London from abroad and paid tax in my home country?

You may be may have access to to relief under a tax treaty between the UK and your home country, but this depends on your residency status and the specific treaty. Contact HMRC or a tax adviser who handles expatriate cases to understand your position.

Can I get a refund if I overpaid National Insurance contributions?

Yes, but only if you overpaid in the current tax year or the previous three years. Contact HMRC with evidence of the overpayment. Refunds for older years are not usually possible unless there was an error by HMRC.

How do I check the status of my refund online?

Log into your HMRC online account using your National Insurance number and password or biometric login. Your account will show the status of any refund due. If you do not have an online account, you can set one up on the HMRC website.