Reed NewsReed News

HMRC Clarifies Tax Repayment Timelines and Security Check Rules

Economy & businessEconomy
Key Points
  • HMRC clarified that tax repayments take up to 10 working days via BACS, but extra security checks can extend this to 12 weeks.
  • For previous tax years, HMRC may issue refunds and send tax calculation letters between June and March, primarily to employed or pension-receiving individuals.
  • HMRC will begin recalculations for the 2025/2026 tax year from June onwards.

According to the Daily Express, HMRC has clarified the rules about the security checks it carries out online. This follows a taxpayer inquiry on social media about a repayment requested on April 7 that was still pending. HMRC responded that if a repayment is requested, it can take up to 10 working days to be issued via BACS.

However, the tax authority selects some repayments for extra security checks, which can take up to 12 weeks to receive the refund. The specific criteria HMRC uses to select repayments for these checks, and how many taxpayers are affected annually, remain unclear. For previous tax years, HMRC may issue a refund if you pay too much tax.

The tax authority may send out a tax calculation letter, such as a P800 or simple assessment letter, if you have paid the wrong amount of tax for the previous year. HMRC typically sends out these letters between June and March of the next tax year. Only people who are employed or are receiving a pension are sent tax calculation letters in the post.

The average processing time for repayments without extra checks is not specified. Looking ahead, HMRC told a taxpayer that it will begin recalculations for the 2025/2026 tax year from June onwards. It is unknown whether taxpayers can take steps to expedite the process if selected for security checks, or how HMRC notifies them of such selections.

Tags
People & Organizations
Medium

Based on 2 sources

2sources
0Verified
5Open
No contradictions

Produced by Reed

HMRC Clarifies Tax Repayment Timelines and Security Check Rules | Reed News