How do I work out if I have paid too much tax?
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 tax 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, but there may be others:
- P60 and/or P45 from an employer
- P11D from an employer
- Details of taxable state benefits received
- Bank statements or certificates of tax deducted (before the 2016/17 tax year)
- Building society statements or certificates of tax deducted (before the 2016/17 tax year)
- Dividend certificates
- Details of rental income and expenses
- Details of certain expenses incurred during your employment that you have not had reimbursed by your employer.
For more information on the types of records and documents that you need to work out your income and tax position, visit GOV.UK.
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 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 Pay As You Earn (PAYE), to work out your tax overpayment or underpayment.
If you live in Scotland and are a Scottish taxpayer, different income tax rates and bands apply to your non-savings and non-dividend income. There is more information in our section on Scottish income tax. UK rates and bands apply to your savings and dividend income.
HM Revenue & Customs (HMRC) have a ‘tax checker’ tool on GOV.UK, which enables you to find out if you are due a repayment of tax. To use this tool you will need to have registered with HMRC digital services. You can read about this in our Tax Essentials section.
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 receive taxable state benefits.
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 pages helpful:
- Employed – How do I work out my tax?
- Self-employment (on our LITRG website) – How do I work out my taxable profits?