Updated: October 2026
Many people in the UK overpay tax without realising they are owed money back. If you have recently retired, taken money from a pension, cut your hours or changed jobs, you could be due a tax refund in 2026.
Here is a clear guide to who is likely to be owed money, how to check, and how to claim it back safely.
Quick answer: The most common reasons retirees are owed tax are emergency tax on a pension withdrawal, retiring part-way through the tax year, or a wrong tax code. Check your HMRC personal tax account or the HMRC app. For pension overpayments, use form P55, P53Z or P50Z, depending on your situation.
Who might be owed a tax refund?
You could be due a refund if you:
- paid emergency tax when you took money from a pension or started a new job
- stopped working part-way through the tax year
- had more than one job or pension and were on the wrong tax code
- took a pension lump sum and were overtaxed
- paid for allowable work expenses, such as cleaning a uniform or professional fees
Common tax refund situations in 2026
1. Emergency tax on pension withdrawals
If you take a lump sum or start drawdown, your pension provider often has to use an emergency tax code. That treats the payment as if you will get the same amount every month, so far too much tax is taken. This is one of the most common reasons retirees are owed money.
If you are planning to take money from your pension, our guides to UFPLS and pension tax-free cash and taking a lump sum or regular income explain how to keep tax down.
2. Retiring part-way through the tax year
If you stop work in, say, September, your employer will have taxed you as if you were going to earn the same all year. Once your actual income for the year is known, you may be owed a refund.
3. Wrong tax code
When you have a State Pension plus a workplace pension or part-time job, HMRC adjusts one of your tax codes to collect the tax due on your State Pension. Mistakes are common, especially in your first year of retirement. Our guide to how the State Pension is taxed explains how it should work.
4. Work expenses
If you are still working, you may be able to claim tax relief on certain costs your employer does not pay back, such as cleaning a uniform or professional subscriptions. You can usually claim for the current tax year and up to four years before.
Note that tax relief for working from home was removed from 6 April 2026, so you can no longer claim it for the 2026 to 2027 tax year onwards. You may still be able to claim for earlier years.
How to check if you are owed a refund
The easiest way is to log in to your HMRC personal tax account or the HMRC app. You can see your income and tax for each year, check your tax code, and claim some refunds online.
HMRC also checks most people’s tax after the end of each tax year. If you have paid too much, it will usually send you a P800 tax calculation between June and the end of November, and many refunds are then paid automatically.
How to claim a refund on a pension
If you have been overtaxed on a pension payment, you do not always need to wait until the end of the tax year. Use the right form for your situation:
- P55: you took part of your pension pot and will not be taking regular payments
- P53Z: you emptied your pension pot and you have other income, such as a job or another pension
- P50Z: you emptied your pension pot and you have stopped work and have no other income from employment or certain benefits
You can claim online with a Government Gateway user ID, or by post. See GOV.UK: Claim a tax refund for the latest guidance.
Watch out for scams
Fake “tax refund” texts and emails are very common. HMRC will never tell you about a refund, or ask for your bank details, by text or email. Always log in through GOV.UK or the HMRC app. Our guide to avoiding scams in retirement has more tips.
If you bank with Barclays, see whether you could be due Barclays compensation.
Final thoughts
If your income changed in the last year, especially if you retired, took money from a pension or reduced your hours, do not assume HMRC got your tax right. Take 15 minutes to check your personal tax account. It is your money, and getting it back can make a real difference.
