HMRC Tax Refund Delays

We reported earlier in the year that HMRC are experiencing difficulties in repaying PAYE tax refunds.

The delays being caused are unprecedented and causing concern for many PAYE tax payers.

Why are there tax refund delays?

The timescales involved in reclaiming a PAYE income tax rebate can fluctuate depending on how it is processed by HMRC.

Some of the main reasons for the delays are stated as being:

  • Internal data integrity issues
  • Staffing shortages
  • New processes to stop fraudulent tax refund claims

Other factors like missing P60’s or P45’s can have an effect because a repayment of tax cannot be calculated unless all pay and tax information is on record.

When will HMRC delays improve?

That is a difficult question to answer.

HMRC staff are trying to work within a system which in some peoples opinion should be improved.

If you have a tax rebate claim with us, or your making one yourself, and it’s taking longer than you think is reasonable, try not to blame the staff working for HMRC. The PAYE system is being improved by HMRC and we just have to hope that in the long term things will improve.

You can find out more about the reasons behind the delays and what members of accounting web are saying by clicking here.

 

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