Automatic PAYE Refunds: Important Changes

HMRC has stopped posting out automatic cheques for individuals due tax refunds. Now, in order to receive your PAYE repayment, you must register your claim online.

The reason behind the changes is to; 1. help drive more online usage, and 2. reduce potential fraudulent behaviour.

What does this mean for you?

Under the previous system, if you received a tax calculation letter (P800) including information about a PAYE overpayment, but you didn’t claim the payment online, you would receive a cheque in the post automatically after 21 days.

However, since 31 May, HMRC has stopped this automatic process, and to receive payment, it’s now up to the individual taxpayer to act. Cheques can still be requested, but it can take up to 6 weeks for a cheque refund to be issued.

According to HMRC, customers will receive instructions on their P800 letter, which are posted out between June and November, detailing how a repayment can be claimed. Instead of cheques (unless requested), repayments will be made using HMRC’s online bank transfer service, which can take up to 5 working days.

For those who are non-digital, or unable to use the online service, HMRC has assured that there will still be non-digital routes to claim repayments for those who need it.

Alternative claim methods

Although online claims are the most encouraged, other options are available, including:

• Through your personal tax account
• Using the HMRC app
• Contacting HMRC directly

Here to help

If you would like further information on PAYE refunds, or are looking for general advice, we are here to help. Do not hesitate to contact our team on 0161 767 1213 or payroll@dtegroup.com