P50: claiming back tax when you've stopped working

Who needs it

• People unemployed for 4 weeks or more who aren't claiming taxable state benefits.
• People who have retired and don't get a pension from their old employer.
• People who don't expect to go back to work, or have returned to full-time study.
• Not if you're still registered with an employment agency: HMRC says you can't claim.
• Not if you've taken a flexible pension payment (use P55), a small pension lump sum (P53 or P53Z), or start a new job within 4 weeks (your new employer repays you through your salary).

What you need before you start

• Your National Insurance number.
• Your employer's PAYE reference, if you have it.
• Parts 2 and 3 of your P45, or the reason you don't have them.
• Any self-employment profits for this tax year.
• Details of pensions, benefits and other income since 6 April.

How to file P50

1. 1Make sure you've had your final pay from your employer.
2. 2Check whether you'll get other taxable income or benefits before the end of the tax year. If you have a works pension, the pension provider can make any repayment instead.
3. 3Claim online through HMRC's service, which is quickest. You can't save your progress, so gather everything first.
4. 4If you'd rather not sign in, complete HMRC's interactive guidance, print the form, sign the declaration and post it.
5. 5Wait for HMRC to reply. It can take 14 days, and HMRC asks you not to chase during that time.

Why tax can be overpaid when you stop work

PAYE spreads your tax-free allowance across the whole tax year. If you stop working part-way through, you may have paid tax on the assumption you'd keep earning. P50 lets you claim that back in the same tax year instead of waiting until it ends.

When P50 is the wrong form

HMRC's P50 guidance lists the cases that go elsewhere. A new job within 4 weeks means your new employer makes the repayment through your salary. A works pension means the pension provider can repay you, or you wait until after 5 April. A flexible pension payment needs P55, and a small pension lump sum P53 or P53Z.

If you're claiming taxable state benefits, check HMRC's taxable benefits guidance before claiming. If your income is high, you may need a Self Assessment return instead.

Online or by post

Online is quickest: you sign in, or create sign-in details, and complete the claim in one go. Without signing in, you work through HMRC's interactive guidance, print the form, sign the declaration and post it.

HMRC confirms whether you're owed a refund, or contacts you for more information. Refunds are paid by payable order, or to someone with a bank account if you don't have one. HMRC can't pay by Bacs.

Common mistakes

• Claiming before your final pay has come through.
• Using P50 after a flexible pension payment. HMRC says to use P55 instead.
• Claiming while still registered with an employment agency.
• Using P50 for an earlier tax year. If your last pay was before 5 April, HMRC points you to its previous-year refund guidance.
• Chasing HMRC within the first 14 days, which it asks you not to do.