It’s all change at HMRC as to how tax refunds will be processed and issued:
HMRC has stopped posting out automatic cheques for tax refunds, meaning individuals must now register a claim online to get their PAYE repayment.
Why Has HMRC Withdrawn Automatic PAYE Cheque Refunds?
HMRC aims to drive online usage and reduce potential fraud by withdrawing automatic PAYE cheque refunds. While cheques are still available upon request, they now take up to 42 days to issue.
How Did the Old System Work?
Previously, employees who received a P800 tax calculation letter detailing a PAYE overpayment but didn’t claim online would get a cheque in the post automatically after 21 days.
When Did HMRC Stop Issuing Automatic Cheques?
As of 31 May, HMRC no longer issues automatic cheques for PAYE refunds. Taxpayers must now actively claim their refunds.
What Do Taxpayers Need to Do Now?
Taxpayers must take action to receive their repayment. P800 letters, sent between June and November, now include instructions on how to claim a repayment. The reference number from the P800 letter and a national insurance number are needed to submit a claim.
How Can Taxpayers Claim Their Repayment?
Taxpayers can claim their repayments online through HMRC’s service for tax overpayments and underpayments. They can request a cheque through this process if preferred. Cheque requests take up to 42 days, while online bank transfers take five working days.
See below for your link to the claim form 👇🏽
Is There Awareness About This Change?
Awareness appears low, so HMRC has highlighted the information in their employer bulletin to ensure everyone is informed.
What If I Can’t Use Online Services?
For those unable to use online services, HMRC still offers non-digital routes to claim repayments. Taxpayers can use their personal tax account, the HMRC app, or contact HMRC to request a cheque.
What Should Employers Do?
Employers with PAYE staff should inform their employees about this change to avoid confusion and ensure timely repayment claims.
👉 Quick Tip: Check your P800 letter carefully and follow the instructions to claim your tax refund online. Don’t miss out on your money!
🔗 And here’s your link if you need to make a claim:
As ever, please contact the IN Team if you need any help with this or other tax refunds:
Contact Details for IN Accountancy | Stockport, Cheshire, SK7 (in-accountancy.co.uk)
