HMRC has stopped posting out automatic cheques for tax refunds in the mail, forcing individual employees to register a claim online to ensure they receive repayment of PAYE
As part of the move to drive online usage and reduce potential fraudulent behaviour, HMRC has withdrawn automatic PAYE cheque refunds. While cheques will still be available if requested, it will take up to 42 days or six weeks to issue a cheque refund.
HMRC is now reminding employers with PAYE staff that it will no longer issue cheques automatically to anyone claiming a PAYE refund for overpayment of tax.
Under the old system, all employees who received a tax calculation letter, known as a P800, which included details about a PAYE overpayment, but did not claim the repayment online, would automatically receive a cheque in the post after 21 days.
Since 31 May, HMRC has stopped issuing these cheques automatically, leaving taxpayers responsible for making a claim. P800 letters are sent out between June and the end of November. Now, taxpayers have to take action to receive their repayment, even though they are entitled to the money due to overpayment of tax.
There seems to be low levels of awareness about the change and HMRC has included the information at the top of this month’s HMRC employer bulletin. HMRC stressed: ‘Customers can claim their repayments [online] at tax overpayments and underpayments. They will also be able to request a cheque through this process if preferred.’
In future. taxpayers will receive instructions in the P800 letter explaining how to claim a repayment when they are sent a tax calculation letter by HMRC.
Employees will need a P800 tax calculation letter to claim as the reference number from the letter is required to submit a claim as well as a national insurance number.
Repayments are then made by HMRC using the online bank transfer service which takes five working days or if requested online, a cheque will be sent within 42 days or six weeks.
HMRC stressed that there will still be non-digital routes for taxpayers who cannot use online services so that they are able to claim their repayments.
It is also possible to claim a refund through your personal tax account, the HMRC app or by contacting HMRC and asking them to send you a cheque.
