What to do if…
your tax refund is being taken to pay a debt you did not expect

What to do now

1. Verify it through GOV.UK, not through the message.
   Open your own browser and go to GOV.UK. Sign in to your personal tax account and, if relevant, your Self Assessment account. Look for a notice, secure message, statement, repayment entry, Simple Assessment bill, or Self Assessment balance that matches what you were told.

2. Write down the key details before you contact anyone.
   Note the refund or repayment amount you expected, the amount being taken, the date, the reference number, the tax year or period, and the exact wording. If you can see the entry in your official online account, save a copy for yourself, but do not send it to any link or address from a suspicious message.

3. Identify which type of debt it appears to be.

   • P800 or Simple Assessment: this usually relates to Income Tax where you have paid too much or too little tax and are not in Self Assessment for that issue.
   • Self Assessment: the balance may be in your Self Assessment account rather than a P800 or Simple Assessment letter.
   • Old tax credits overpayment: tax credits ended on 5 April 2025, but an older overpayment issue may still need checking.
   • Another tax debt or penalty: ask HMRC to identify the tax type, period, original notice, and current balance.

4. Use official contact routes to ask for a breakdown.
   Use GOV.UK contact pages, your online account, or a phone number you found independently on GOV.UK. Ask:

   • what the debt is for;
   • which tax year or period it relates to;
   • how the amount was calculated;
   • when the notice or decision was issued;
   • whether a copy can be sent or shown in your online account;
   • whether the refund has already been set against the debt or is only being warned about.

5. If it looks wrong, use the route that matches the debt.

   • P800 or Simple Assessment: tell HMRC what you think is wrong, such as a duplicated employment, missing income detail, wrong tax code history, or income that belongs to a different year. Ask what evidence they need to correct the calculation.
   • Self Assessment: check the specific tax year in your account. Ask HMRC about the entry causing the balance, such as a missing payment, duplicated income, amendment, penalty, or interest you do not recognise.
   • Tax credits overpayment: use the tax credits overpayment dispute route if you think you should not have to repay it. Focus on when you contacted HMRC, what you were told, what your award notices said, and why it was reasonable for you to think the payments were right.

6. If the contact may be a scam or your account may be compromised, lock it down.
   Change your sign-in details through the official service, check whether your email address, phone number, postal address, or bank details were changed, and report suspicious HMRC messages through GOV.UK.

7. If the debt is genuine but unaffordable, ask about payment options.
   If money is still owed after the refund is taken, or further collection is expected, ask HMRC whether you may be able to set up a payment plan. Ask for any arrangement, refusal, or next step to be confirmed in writing or visible in your account.

8. If losing the refund creates an immediate shortfall, protect essentials first.
   For the next 48 hours, list only the essentials: rent or mortgage, council tax or priority bills, energy, food, travel to work, and critical medicines. If you are about to miss a payment, contact that provider and ask for a short hold or arrangement while you get the HMRC paperwork clarified.