The cutoff date for requesting a tax refund from the 2020/2021 tax period is rapidly approaching on 5 April 2025.
HMRC’s deadline is for individuals who have paid income tax through the PAYE system usually through employment.
According to HMRC legislation, an income tax refund cannot be requested after four tax years have passed since the relevant tax year has ended.
It is crucial to keep in mind that HMRC operates based on tax years (starting from 6 April to the subsequent 5 April) rather than calendar years (January to January).
If you are requesting a reimbursement for the tax year 2020/2021, which ended on April 5th, 2021, your claim must be submitted by April 5th, 2025.
The PAYE tax rebate deadline is especially important to individuals who are claiming a tax rebate for expenses that are related to their employment.
HMRC expects any claims for the 2020/21 tax year to be submitted and received by them on or before April 5 2025 with any claims received after this date typically rejected.
If you were automatically owed a tax rebate from HMRC for the 20/21 tax year you should have already received that refund of tax.
You can check the status of any overpaid tax that has been automatically refunded in your personal tax account or the HMRC downloadable app.
Why could I have overpaid tax in the 2020/2021 tax year?
The criteria for receiving a tax rebate that has to be claimed back from HMRC (and not automatically refunded) is determined by the type of earnings you had during the period 6 April 2020 to 5 April 2021.
There are several common reasons for paying more income tax than necessary through PAYE, such as:
- Costs associated with your job, such as washing your uniform, some Union and professional subscription fees, hand tools and equipment.
- You departed from the United Kingdom during the 2020/2021 tax year and were employed for a portion of that year prior to leaving.
- Working from home allowance.
- Married persons allowance.
- Tax paid on the interest portion of a PPI refund.
How can I request a tax refund for the tax year 2020/2021?
A number of submissions can be made by using online options made available by HMRC, and it is recommended to save a duplicate of the filled out form.
When sending a paper claim form via mail, make sure to send it in a timely manner to ensure it reaches HMRC by the 5th of April 2025. Keeping proof of postage from your postal provider is recommended.
There are various forms that can be used to claim tax rebates. Some of the common one’s are listed below:
- To receive tax relief on employment expenses, individuals can typically complete and submit the P87 form online or by post directly to HMRC.
- If you left the UK during 20/21 it is recommended to submit the P85 leaving the UK form online.
- For claiming PPI interest tax relief, the R40 form can be accessed online or submitted via post.
After you have submitted your claim, HMRC will send you with a P800 tax calculation letter outlining any excess tax that is owed to you once they have processed your claim.
Your P800 calculation will also specify the method by which HMRC will reimburse you for any tax that has been overpaid.
Tax free allowances and tax reliefs for the 20/21 tax year
The personal allowance for the 20/21 tax year is automatically applied by HMRC to reduce your taxable income but some tax free allowances and tax reliefs are only given if you claim them.
Making the most of available tax allowances and reliefs is crucial to ensuring you only pay the necessary amount of income tax.
Typically, HMRC permits these allowances and reliefs to be claimed and applied within the corresponding tax year.
If not utilised during that period, the opportunity to use the tax exemption is lost.
Our tax free income guide highlights many of the most common tax free reliefs and allowances and how to use them effectively.
