PAYE refund basics
How to Estimate a UK Tax Refund from Your P60 or Payslip
A PAYE refund can arise when Income Tax deducted during the year is higher than the Income Tax due after HMRC considers your annual income, allowances and eligible reliefs.
Updated 21 September 2026 · 8 min read · Educational guidance
The refund calculation in plain English
PAYE spreads an estimate of Income Tax across your pay periods. The final position compares tax already deducted with tax due on the whole year’s taxable income.
A refund is therefore usually a repayment of your own overpaid tax, not an additional benefit or a percentage of your expenses.
- ✓ Add taxable income from all jobs and pensions
- ✓ Subtract eligible deductions and apply the Personal Allowance
- ✓ Calculate tax using the bands that apply
- ✓ Compare the result with PAYE Income Tax deducted
Example: If £9,200 was deducted but estimated Income Tax is £8,450, the indicative refund is £750.
Related: Self Assessment tax bill →
Which figures to collect
A P60 shows pay and Income Tax deducted for a job held at the end of the tax year. A P45 covers a job that ended. Final payslips can help you reconcile the figures.
Keep National Insurance and student-loan deductions separate. They are not part of the PAYE Income Tax figure entered in the ToolsFA refund field.
- ✓ P60 and any P45 forms
- ✓ Final payslips
- ✓ Pension contribution records
- ✓ Receipts for qualifying employment expenses
- ✓ Details of other taxable income
Related: Pension tax relief explained →
Why your result can differ from HMRC
A calculator cannot infer an emergency tax code, benefits in kind, savings, dividends, Marriage Allowance, multiple employments or an earlier-year adjustment embedded in your tax code.
Use the estimate to identify a likely overpayment, then check HMRC’s current-year or previous-year service before making a claim.
Related: Student-loan repayments →
Frequently asked questions
Does a P60 show National Insurance separately?
Yes. Use the Income Tax deducted figure for the refund estimate, not the National Insurance amount.
Can an emergency tax code cause an overpayment?
It can, particularly when HMRC or payroll did not yet have complete information.
Is the calculator a refund claim?
No. It provides an estimate; any claim or correction must use the appropriate HMRC process.
Official sources and important note
General educational information only, not personal tax advice. Confirm your position with HMRC or a qualified UK tax professional.