If you’ve paid too much tax to HMRC, you have the right to claim it back, but the clock is ticking…
Overpayment relief allows individuals and businesses to correct mistakes or omissions from previous tax returns and recover tax that was incorrectly assessed or overpaid.
Many taxpayers don’t realise they’re entitled to a refund, or that HMRC has strict rules and deadlines. Missing these can mean permanently losing money that’s rightfully yours.
HMRC gives just four years from the end of the relevant tax year to submit an overpayment relief claim. After that, the right to reclaim your own money is lost. For example, errors relating to the 2021/22 tax year must be claimed by 5 April 2026.
Where we commonly recover tax for clients
Because of the way the tax system works, overpayments aren’t always obvious. We regularly support clients with claims relating to:
- Personal pension contributions and Gift Aid – Higher‑rate and additional‑rate taxpayers frequently miss out on relief they’re entitled to, particularly when contributions aren’t fully captured on their return. This is one of the most common causes of overpaid Income Tax.
- Incorrect Self Assessment returns – From missed allowances to duplicated income or misreported figures, historic errors can be corrected even after the amendment window has closed, but only via overpayment relief.
- Capital gains tax miscalculations – Including incorrect base costs, misapplied reliefs or disposals counted twice.
- PAYE and tax code errors – Historic coding issues, duplicated PAYE entries and incorrect benefits reporting can all leave you having paid too much.
- Foreign income and double‑taxation relief issues – Whether treaty relief wasn’t claimed or circumstances have changed, these errors often surface years later.
- Corporation tax overpayments – This includes capital allowances adjustments, loss claims not properly applied, or corrections after accounts are finalised.
Overpayment relief claims must be made in writing, supported by evidence, and submitted within the strict statutory timeframe.
If you’re unsure whether you’ve overpaid tax, or you think something isn’t right but aren’t sure how to fix it, we’re here to help. A quick review from our experts can confirm whether an amendment or overpayment relief claim is possible — and how much you could reclaim.
You can contact Rob Case on 01242 776000 or email Tax@randall-payne.co.uk if you want to discuss your tax situation in more detail.