Households are being urged to check whether they have paid too much tax and could be due a refund from HMRC, with some claims potentially worth hundreds or even thousands of pounds.
Married couples, people who have taken money from their pensions and employees who have paid certain work expenses themselves are among those being encouraged to check their tax position.
Taxpayers are being warned not to assume they are automatically entitled to a refund, or to use firms promising guaranteed payouts.
Tax barrister Andy Wood, founder of Tax Barrister UK, has highlighted three areas that are particularly easy to overlook.
They include Marriage Allowance claims worth more than £1,000 when backdated, emergency tax refunds on pension withdrawals averaging almost £4,000, and tax relief on eligible employment expenses.
1. Marriage Allowance could be worth more than £1,000
Marriage Allowance allows an eligible spouse or civil partner to transfer £1,260 of their Personal Allowance to their partner.
This can reduce the receiving partner's tax bill by up to £252 a year. Eligible couples can also backdate claims to 6 April 2022, meaning a missed claim could be worth more than £1,000.
Andy said: “Marriage Allowance is relatively straightforward, but it can easily be overlooked because couples must actively make a claim.
“It will not apply to every married couple. Broadly, one partner will usually need to have income below the Personal Allowance while the other pays Income Tax at the basic rate.
“If a couple has been eligible for several years but has never claimed, the ability to backdate the application could make the refund considerably more valuable.
“Applications can be made directly through GOV.UK without paying a claims company, although eligibility should always be checked carefully.”
Generally, the lower earner must have income below their Personal Allowance, while the higher earner must pay Income Tax at the basic rate. The rules differ slightly in Scotland.
2. Pension withdrawals could trigger a surprise tax refund
People who take money from their pension flexibly can find that too much tax is deducted from their first withdrawal.
This can happen because pension providers may initially use an emergency tax code, effectively treating the withdrawal as though the same amount will be paid every month for the rest of the tax year.
HMRC's latest figures show that between April and June 2026 it processed 12,612 pension tax repayment claims, paying back a total of £50.35 million. That works out at almost £4,000 per repayment on average.
Andy explained:
“When somebody makes their first flexible pension withdrawal, the provider may have to apply an emergency tax code on a month-one basis.
“This effectively treats that single withdrawal as though the same amount will be received every month for the remainder of the tax year. As a result, the initial deduction can be significantly higher than the person’s eventual tax liability.
“An emergency deduction does not necessarily mean HMRC has made an error, and it does not automatically mean the entire amount deducted is refundable. The correct position depends on the individual’s total taxable income for the year.
“Where too much has been taken, people may be able to reclaim it during the tax year rather than waiting for HMRC to reconcile their records later.”
The form needed depends on how the pension was accessed:
- P55 if only part of the pension pot was withdrawn
- P53Z if the whole pot was withdrawn and the person has other taxable income
- P50Z if the whole pot was withdrawn and the person has stopped working
HMRC recorded 10,200 P55 claims, 2,001 P53Z claims and 411 P50Z claims during the latest three-month period.
3. Workers could be missing tax relief on job expenses
Employees who have paid certain costs themselves because of their job may also be able to claim tax relief if their employer has not reimbursed them.
Potentially eligible expenses can include specialist work clothing, professional subscriptions, tools and certain business travel costs.
Andy said: “Employees sometimes assume that their tax position is automatically correct because Income Tax is deducted through PAYE. However, HMRC will not necessarily know about eligible costs that a worker has paid personally.
“Tax relief does not usually mean receiving the full cost of an item back. It generally reduces the amount of taxable income by the value of the qualifying expense, so the benefit depends on the person’s tax rate.
“There are also strict rules around what qualifies. Ordinary clothing and the cost of commuting between home and a permanent workplace will not normally be allowable simply because they are connected to someone’s job.
“Claims can generally be made for the current tax year and the previous four tax years, so keeping receipts and accurate records could be important.”
HMRC says employees may be able to claim where they have used their own money for things they must buy for their job and use solely for work. Claims for previous tax years can result in HMRC adjusting the tax code or issuing a refund.
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Don't assume HMRC will find an overpayment for you
Andy said taxpayers should take the time to check their tax position rather than assuming any overpayment will automatically be returned.
He added: “Taxpayers should not assume that a refund will be issued automatically. Checking your tax code, PAYE record, and previous deductions could reveal that too much tax has been paid.
“At the same time, people should be cautious of firms promising large or guaranteed refunds. A claim should be accurate, supported by evidence, and submitted through the appropriate HMRC process.
“Any refund will depend on the taxpayer’s individual circumstances, and making a speculative claim could create further problems if the information provided is incorrect.”
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