HMRC have made the decision to stop posting out automatic cheques for individuals who are due tax refunds. Instead, individual employees will now need to register a claim online, to make sure they receive their repayment of PAYE.
The decision has been made to help drive more online usage and reduce any potential fraudulent behaviour.
What does this now mean for you?
Under the old system, all employees who received a tax calculation letter, which is also known as a P800 that includes details about a PAYE overpayment but didn’t claim the repayment online, would normally automatically receive a cheque in the post after 21 days.
Since 31 May, HMRC have stopped issuing cheques automatically, leaving it up to the taxpayer to act to receive payment. P800 letters are sent out between June and the end of November.
Cheques can still be available if they are requested, but it can take up to 42 days or six weeks for a cheque refund to be issued.
HMRC have stated that in the future, customers will receive instructions on their P800 letter, explaining how to claim a repayment.
Repayments will then be made by HMRC using the online bank transfer service, which can take up to five working days.
HMRC has highlighted that there will still be non-digital routes for taxpayers who are unable to use online services to make sure they can claim their repayments.
Alternative claim methods
Whilst online claims are the most encouraged method, there are other options available to receive your PAYE refund. This includes:
- Through your personal tax account
- Using the HMRC app
- Contacting HMRC directly
Here to help
If you have any questions about PAYE automatic refunds, or are looking for tax advice, we’re here to help. Simply fill out the form below and one of our team will be in touch.
