How Long Does It Take to Get a Tax Refund in 2022?
Employees who pay tax through PAYE might qualify for a refund because their taxes were miscalculated. For self-employed individuals, there may have been errors in your tax return, which caused you to overpay taxes. If this applies to you and you are owed a refund by HMRC, you may wonder how long it will take for your tax refund to arrive.
This article will help guide you on how to claim your tax refund and answer the question: ‘How long does it take to get a tax refund?’
P800 Form for Tax Overpayment
Should you fail to pay the correct amount by the end of the tax year, HMRC will issue you a P800 form. This is what’s known as the Simple Assessment form for calculating taxes. If you owe taxes or need a refund, your P800 will tell you how to do so.
How Do I Claim Back Tax in the UK?
At the end of the tax year, HMRC issues P800 tax notices to taxpayers who have overpaid or underpaid their taxes.
Let’s say you’ve received a P800 form, which indicates a refund is owed to you. How you can get a refund will be explained in your P800 tax calculation.
If your P800 says you can claim your refund online, the money should be in your UK account within five working days as soon as your bank processes the payment. If you fail to claim within 21 days, HMRC will issue you a cheque. This will arrive within 6 weeks after your P800 is issued. If you can’t claim your refund online, you can get in touch with HMRC for further steps you can take.
Your P800 can also indicate that, instead of getting your refund online, you’ll get a cheque, which means there is no need to file a claim. You’ll receive the cheque within 14 days of when your P800 is dated.
If you didn’t receive a P800 tax notice, you could work out how much Income Tax you owe using HMRC’s online tool. Then, you can notify HMRC if you believe you’ve overpaid taxes. If they approve your claim, a P800 will be sent to you.
If you believe you have paid extra tax through PAYE for the current tax year, you should notify HMRC before the end of the year. To do so, you can call their helpline for employees and individuals. Prepare for your call to HMRC by ensuring you have your personal information ready, like your name, National Insurance number, address and date of birth. You should also collect pertinent information about your employers and pension providers, such as their PAYE scheme reference number. Finally, calculate your earnings and pensions based on the current tax year. More information may be required to support your claim; HMRC will let you know which documentation is necessary.
Will HMRC Automatically Refund Overpaid Tax?
In some cases, HMRC will automatically refund overpaid tax. In other cases, you’ll have to apply for a refund. This means you need to keep an eye on your tax situation regularly. By doing so, you not only ensure that you are paying enough tax but also prevent yourself from potentially losing hundreds or thousands of pounds.
How Long Does a Tax Refund Take in the UK in 2022?
When it comes to tax refunds in the UK, it is quite hard to answer precisely how long it would take for a taxpayer to receive their refund. Applying for a refund and receiving it can take some time, depending on the processing time of HMRC. There is generally an 8 to 12-week waiting period before you receive a tax rebate, although this can vary.
Usually, following your tax refund approval, your HMRC repayment is issued within a short period. As mentioned, the length of time it takes to receive your tax rebate is determined by several factors. For instance, if you’ll be receiving the payment through your bank account, debit card or credit card, it should reach you within five business days. In most cases, if you are expecting a cheque, you should receive it within five weeks.
The processing time can also be influenced by the system used (such as PAYE or Self Assessment), the method of application (online or paper) and security checks carried out by HMRC.
Can You Speed Up the Process of Getting Your Tax Refund?
It is up to HMRC to process your refund, but you can do a few things to speed up the process. For instance, you can make sure you have all the necessary documents and information so that the HMRC won’t have to contact you repeatedly to get all of the information they need. It is also advisable not to submit tax rebate requests when HMRC is busiest.
Payments under £1,000 usually go through quickly since these are smaller payments. The greater the amount of the refund, the more verification stages are required, which results in a longer processing time.
How Late Can I Claim a Tax Refund?
Generally, refunds and repayments can’t be claimed more than four years after the tax year in question has ended. If you fail to file your claim within the deadline, any refund due to you will be forfeited, and claims for the tax year will no longer be accepted.
For example, to claim a refund for the 2020-21 tax year, add four years to 2021. In that case, your claim must be submitted by 5 April 2025.
Consult with the Tax Experts
When it comes to tax work, having a team of experts by your side can make all the difference.
At Nigel B Butler Limited, we offer a wide array of services designed to make taxes as convenient as possible for you. From bookkeeping and accounting to managing payroll and filing a self-employed tax return, we can assist you with all of your tax needs, so you can focus on growing your business.Contact our team now and schedule a free consultation.