Claiming overpaid PAYE after retiring part way through tax year - impossible?

molerat

https://forums.moneysavingexpert.com/discussion/comment/82091605#Comment_82091605

You cannot reclaim tax for the year gone by. Once HMRC have received all details from all the sources of payments they will update your account and issue any refund automatically, this should be sometime around October. There is no form you can fill in to speed this up, the forms available are for use in the current year.

wadsRtight

https://forums.moneysavingexpert.com/discussion/comment/82091107#Comment_82091107

Retirees in receipt of state pension with extra income from interest etc aren't normally required to file a self assessment tax return. For last year I'm exempt from doing an SA despite PAYE and state pension running concurrently.

I've not received any message from HMRC asking for an SA. I've heard there's a simplified form for savings interest/dividends though not been asked to return one of these either.

So I guess it's the 'radio silence' from HMRC while they're holding ~£1000s of my money that's making me antsy.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82092731#Comment_82092731

Unfortunately at this stage it's just a case of waiting for the annual tax assessment process to take its course, after which you'll be refunded any overpayment from the previous tax year.

UKTaxHelper

Agree on last year, that one just has to run its course. Separate thing though, the K44 and that £15,300 estimate are this year's figures, and you can change those yourself in the personal tax account by dropping the estimated pay for the old job down to nil. Worth doing, otherwise the wrong code just rolls on and you are back here again next year.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82092945#Comment_82092945

While agreeing that it's generally worth tidying up any inaccurate data, I pointed out previously that OP's current tax code is irrelevant if there's no PAYE income (same applies for income tax estimate), but don't think that was ever clarified.

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82092731#Comment_82092731

yes, hence I said unless you have done one. Some people are required, some choose to, and many do not, do tax returns, but we do not know which applies to you.

wadsRtight

https://forums.moneysavingexpert.com/discussion/comment/82092765#Comment_82092765

Thanks. It seems that online, there's no way to initiate a self-assessment process for tax year 2025-2026. I am leery of phoning as I know how painful a process that is. Now, I got an AI answer like this:

"You usually do not need to manually report savings interest under £10,000 to HMRC yourself, because UK banks and building societies report it automatically"

If that is accurate then it explains why I passed the 'no SA needed' test on the HMRC website where you answer a series of questions about total earnings and savings interest in the prior year. I am aware that tax is not taken on interest automatically but was surprised to read that "UK banks and building societies report it automatically". All well and good then if HMRC gets a reconciled view of the various accounts I have and will present me with an accurate tax demand!

It's beginning to look like overpaid PAYE due to stopping work partway though the tax year is going to balance out unpaid tax on interest (~£4,000) for that year. So I'll just sit tight and wait for HMRC to contact me if they need to.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82114271#Comment_82114271

Yes, as above, there isn't anything to do for now so no point in phoning or trying to contact them any other way at this stage - once they've assembled a complete picture of your tax status for 2025/26, i.e. all income streams (including savings interest submitted by the relevant banks and/or building societies) and tax paid, they can calculate any under- or overpayment, and deal with it accordingly. You'll be sent a copy of their assessment later this year and can challenge anything inaccurate at that stage if needed…