Tax Refunds: Six Individuals Who May Qualify For A Personal Tax Refund in 2025

Having your Personal Tax Return (Self Assessment) filed can sometimes feel like a daunting task, but there’s a silver lining: you might be eligible for a tax refund. Many individuals unknowingly overpay their taxes and fail to claim their Personal Tax Refunds. As you begin to plan having your 2025 Self Assessment filed to HMRC, here are six types of individuals who may qualify for a Personal Tax Refund:

1. Self-Employed Individuals with Overestimated Payments on Account

If you’re self-employed and make advance payments on your tax bill through Payments on Account, you might have overestimated your 2025 taxable income when your 2024 Self Assessment was filed. If your actual taxable income for 2025 was lower than expected, you may have paid too much Personal Tax to HMRC, via your Payments on Account, and could be entitled to a Personal Tax Refund.

2. High Earners with Pension Contributions

If you make personal pension contributions and pay higher or additional rate tax, you may be entitled to claim extra tax relief. While basic-rate tax relief is given at source, higher-rate taxpayers need to claim additional relief through Self Assessment, which could result in a Personal Tax Refund. A lot of higher- rate taxpayers are unaware that they have to file a Self Assessment to claim the Tax Refund that they are entitled to, thus overpaying hundreds or thousands of pounds of Personal Tax to HMRC every year.

3. Individuals With PAYE Employment Ending, or Had a Change in Income, During The Tax Year

If your PAYE employment ended during the tax year, or you took a career break, or saw a significant reduction in your PAYE employment income, you may have overpaid Personal Tax via PAYE. This can happen if you’ve had a job for only part of the year and tax has been deducted as if you were working the whole year. This is because PAYE generally assumes a full-year’s earnings when calculating PAYE deductions, meaning you could have paid more tax than necessary. Having your Self Assessment Tax Return filed will allow you to reconcile your tax payments and claim a Personal Tax Refund if applicable.

4. Individuals with Multiple Income Sources

If you have multiple sources of income, you may be due a Personal Tax Refund. This could be the case if you received employment income via PAYE whilst at the same time making a trading loss with your self-employment or from a Partnership. If you have multiple PAYE jobs, especially if they were part-time, there’s also a chance your tax has been over-deducted as the PAYE system may not have accounted for your full tax-free allowance correctly, leading to an overpayment. At DNM, we will prepare and file your Self Assessment, in accordance to your specific income situation, to ensure you receive any Tax Refund you are due.

5. CIS (Construction Industry Scheme) Workers

If you work in the construction industry as a subcontractor, tax is usually deducted from your pay at a flat rate under CIS—effectively taking away your tax-free Personal Allowance. Depending on your level of gross income, and your allowable expenses (such as tools, travel, and materials), you may have overpaid your Personal Tax via CIS and could be due a Personal Tax Refund.

6. Individuals Who Sold Property and Overpaid Capital Gains Tax

If you sold property and paid Capital Gains Tax (CGT) but later realised you were entitled to exemptions or deductions that you did not claim (like private residence relief or allowable losses)—or over estimated your other Personal Income—then you may have paid too much Capital Gains Tax and can qualify for a Personal Tax Refund via having your 2025 Self Assessment filed.

The above list is not exhaustive, but merely examples of individuals who may qualify for a Personal Tax Refund for the 2024 to 2025 tax year.

With 6 April 2025 soon approaching, why wait to find out whether you will be due a Personal Tax Refund?

Contact Will today on 01803 906 836 to discuss your income and tax situation to see if you are likely to qualify to receive a Personal Tax refund in 2025.

Rest assured, at DNM we will ensure you receive every penny you’re owed.