Dealing with tax can be stressful, especially when you think you may have paid more than you should have. HMRC provides a formal way to correct this. It is called overpayment relief, and it allows you to claim a repayment of tax that was charged in error.
This guide explains what overpayment relief is, who can use it, the time limits involved, how to make a claim, and what to watch out for. The goal is to help you understand your rights and avoid losing money simply because of a missed deadline.
HMRC Overpayment Relief Claim Time Limits
- Overpayment relief lets you reclaim tax you paid by mistake.
- You normally have four years from the end of the tax year to make a claim.
- Claims must meet strict rules and cannot be used to fix issues caused by late filing.
- HMRC expects clear evidence and a full explanation of the mistake.
- Missing the deadline usually means the claim will be rejected.
Understanding Overpayment Relief
Before making a claim, it helps to understand what overpayment relief actually is and how it works. HMRC uses this system to correct genuine mistakes after the normal amendment window has passed. It is meant to deal with clear errors, not disagreements about policy or situations where the taxpayer simply missed a deadline. This section explains the basics so you know whether the rules apply to your case.
What is overpayment relief?
Overpayment relief is an HMRC process that allows taxpayers to correct certain mistakes in past tax returns. If the wrong tax was charged because of an error in a return, or because the taxpayer did not claim relief they were entitled to at the time, overpayment relief may help.
It covers income tax, capital gains tax, corporation tax and some other direct taxes. The rules are set out in UK tax legislation and follow strict conditions.
Types of overpayment
Overpayment relief can apply to a range of situations, including:
- You included the wrong figures in your return.
- You paid tax on income that should not have been taxable.
- You forgot to claim an allowance or relief you qualified for.
- You used the wrong legal position when filing the return.
- HMRC made an error and you later noticed it.
It is important to show that the original tax charge would have been lower if the correct information had been filed at the time.
Eligibility criteria
To qualify for overpayment relief, your case must meet these conditions:
- The mistake must relate to a tax return, tax calculation or assessment.
- The tax year must still be within the four year time limit.
- You must give HMRC full facts and evidence.
- You must explain the reason for the mistake.
- The issue must not be caused by late filing or failing to meet basic duties.
If your mistake results from choosing not to file something correctly, HMRC may deny the claim.
Who can make a claim?
You can make a claim if you are:
- An individual taxpayer.
- A partnership.
- A limited company.
- The personal representative of someone who has died.
If the taxpayer is unable to manage their affairs, an authorised agent or accountant can submit the claim.
Time Limits for Overpayment Relief
Time limits are one of the most important parts of the overpayment relief process. HMRC does not allow open ended claims, and the clock starts ticking from the end of each tax year. Even if the mistake is genuine, a late claim is normally rejected. Understanding these deadlines helps you act quickly and avoid missing out.
What is the HMRC overpayment relief claim time limit?
HMRC gives taxpayers four years from the end of the tax year to correct mistakes using an overpayment relief claim. For example, for the 2020 to 2021 tax year, the deadline would be 5 April 2025.
Missing the deadline almost always results in HMRC rejecting the claim, even if tax was clearly overpaid.
Standard amendment window
Before using overpayment relief, HMRC expects you to use the normal amendment window where possible. This is the period during which you can make corrections to a return without using the overpayment relief rules.
The standard amendment window is:
- 12 months from the normal filing deadline.
For example, the 2023 to 2024 tax return (due 31 January 2025) can be amended until 31 January 2026.
If the amendment window has passed, overpayment relief becomes the fallback option.
Overpayment relief timeframe
Here is how the four year rule applies to common tax years:
|
Tax Year |
Final Deadline |
|
2020 to 2021 |
5 April 2025 |
|
2021 to 2022 |
5 April 2026 |
|
2022 to 2023 |
5 April 2027 |
|
2023 to 2024 |
5 April 2028 |
The same four year rule applies to most direct taxes. HMRC will not usually accept late claims unless there is a legal exception, which is very rare.
Example
David filed his 2021 to 2022 tax return in January 2023. Two years later he finds out that the income figure he used was wrong because a client issued a corrected statement.
The normal correction deadline passed on 31 January 2024. He now has until 5 April 2026 to send an overpayment relief claim.
If he misses that date, HMRC is likely to reject the claim even if it is valid.
Restrictions and Limitations
Overpayment relief cannot be used for every kind of tax issue. HMRC has specific rules about what is allowed and what is not. This section explains where the limits lie and helps you avoid relying on overpayment relief in situations where it cannot help. Knowing the restrictions early saves time and reduces frustration.
When you cannot use overpayment relief
Overpayment relief is not a general backup for any issue with your tax. You cannot use it when:
- You filed your return late.
- You did not take reasonable care.
- You want to change your mind about how you reported something.
- You are trying to correct an avoidance scheme outcome.
- HMRC has already opened an enquiry and the matter could have been raised then.
The rules are designed to stop people using overpayment relief as a way to re open old returns without good reason.
Key disqualifiers
HMRC may reject a claim if:
- You knew about the mistake earlier and did nothing.
- You are trying to use overpayment relief to challenge HMRC’s interpretation of the law.
- You failed to make a claim or election on time.
- You are asking HMRC to revisit an issue that was already checked.
The key idea is that taxpayers must follow deadlines and take reasonable care.
What does not count as a claim mistake?
Not every issue qualifies as an overpayment mistake. Examples include:
- Forgetting to file a return.
- Missing the deadline for a relief or allowance that required a formal claim.
- Disagreeing with HMRC after an enquiry has closed.
- Trying to claim a relief that was not available in the tax year.
If the rules required you to act at the time, you cannot fix that failure later through overpayment relief.
How to Make an Overpayment Relief Claim
Making a claim requires clear information, supporting evidence and careful explanation. HMRC expects claims to follow a proper format and be backed by facts. This section guides you through the process step by step so you know what to include and how to present your case correctly.
Claiming overpayment relief
A valid claim must be organised and supported by evidence. HMRC expects detailed explanations and proof. Claims can be made by post or through an accountant, and in some cases online depending on the tax type.
You must make sure your claim is sent before the deadline. HMRC will reject late claims almost automatically.
Claim format
A claim must include:
- Your name and tax reference number.
- The tax year you are claiming for.
- The amount of tax you believe is overpaid.
- Full facts of the mistake.
- An explanation of the law or figures that apply.
- A signed declaration confirming the information is correct.
- Supporting evidence such as statements or corrected documents.
HMRC will not consider vague or incomplete claims. You can get further help from HMRC official website
https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12150
How to make an HMRC overpayment relief claim
To make a claim:
- Gather all documents supporting the correction.
- Write a clear explanation of the mistake.
- Complete any relevant HMRC forms if required
- Send the claim to the correct HMRC office.
- Keep copies of everything.
- Respond quickly if HMRC asks questions.
More information can be found on the HMRC website:
https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12005
Why timing matters
The strict four year limit means you should act as soon as you notice a mistake. HMRC rarely accepts late claims. Missing the deadline usually means the tax cannot be refunded even if the error is obvious.
If you are unsure whether your situation qualifies, it is safer to ask for advice early.
Case Law and Tribunal Examples
Tribunal cases show how the rules work in real life and how strict HMRC can be about deadlines and evidence. They also help taxpayers understand how the law is applied when there is a dispute. The following examples highlight key lessons that can help you avoid common pitfalls.
Examples from recent tribunal decisions
Tribunal cases help show how HMRC and the courts apply the rules in real life. Below are two simplified examples that highlight key points.
BTR Core Fund v HMRC (2024)
In this case, the taxpayer tried to use overpayment relief to correct a technical issue in an old return. The tribunal ruled that the claim failed because the taxpayer had earlier opportunities to raise the point and did not act. The decision confirmed that overpayment relief cannot be used to reopen matters that could have been handled through the normal filing or enquiry process.
Candy v HMRC (2025)
This case involved a dispute about income reported in a previous year. The taxpayer proved that the figures relied on incorrect information supplied by a third party. The tribunal accepted the overpayment relief claim because the error was genuine, the taxpayer acted quickly once aware of it and the claim was within the time limit. The case showed that accurate evidence and prompt action are essential.
Practical Considerations and Best Practices
Good organisation and early action make overpayment relief claims much easier. This section focuses on practical tips that help you stay within the rules, keep clear records and avoid missing deadlines. These small steps can make a big difference when dealing with HMRC.
Be aware of the time limits
The four year deadline is the most common reason claims fail. Set reminders and check past returns regularly to avoid losing your right to claim.
Keep clear records of all tax filings and correspondence
HMRC will expect supporting documents such as:
- Income statements
- Bank records
- Allowance calculations
- Emails and letters
- Corrected documents
Good records make it easier to prove your position.
Don’t use overpayment relief as a substitute for filing on time
Overpayment relief is not designed to fix late returns or missed deadlines. Always file on time and stay within the rules so you do not need to rely on relief later.
Get professional advice early
Mistakes involving tax can be complex. Getting advice early can save time and reduce risk. A qualified accountant can help you meet deadlines, gather evidence and prepare a clear claim.
FAQs: Overpayment Relief Claims
What is the time limit for HMRC overpayment relief?
The deadline is usually four years from the end of the tax year.
How many years back can I claim overpaid tax?
Most taxpayers can claim back up to four tax years. Older years are usually out of time.
What is the 6 year rule for HMRC?
The six year rule mainly applies to record keeping and some compliance checks. It does not change the four year time limit for overpayment relief.
How many years can HMRC go back to claim taxes?
HMRC can go back:
- 4 years for simple mistakes
- 6 years for carelessness
- Up to 20 years for deliberate errors
What happens if you miss the overpayment relief deadline?
HMRC will almost always reject the claim. Only exceptional legal situations allow late acceptance.
Can I claim interest on tax I overpaid?
Yes, HMRC usually pays repayment interest on tax refunded, but the rate is modest and rules apply.
