Income Tax Refund Problems?

[98elise]

I'm owed about 7k from last years self assessment. It shows up in the government gateway and twice I've applied for it to be repaid, which has been ignored.

When you apply it says it should be paid in 2 weeks, but to wait 4 weeks before contacting them. 4 weeks was up on Christmas eve and yet again the money has failed to be paid back. I'm retired so this is a big hole in my finances that I didn't expect.

Is this normal?

Edited by 98elise on Wednesday 28th December 10:46

[bogie]

Not normal in my experience. Over the last 15 years ive done my self assessment in the first couple of weeks of each April, and had a refund within a week...not for £7k though, max around £2800.

[Geoffscars]

I’ve had the same experience with £1700
After numerous attempts to get the money they now say a cheque will be posted!!

[Kirkmoly]

I’ve never experienced anything like that. When you file, there is a field in which you specify the sort code and account number to which HMRC should deposit any refund of tax.

Ime the funds appear promptly and automatically. There’s no need to “apply” for the refund separately from filing a return.

I filed 2021/22 on November 30th this year and my refund of £8.5k cleared my bank on December 12th. That’s about the usual length of time.

Edited by Kirkmoly on Tuesday 27th December 20:01

[MaxFromage]

98elise said:

I'm owed about 7k from last years self assessment. It shows up in the government gateway and twice I've applied for it to be repaid, which has been ignored.

When you apply it says it should be paid in 2 weeks, but to wait 4 weeks before contacting them. 4 weeks was up on Christmas eve and yet again the money has failed to be paid back. I'm retired so thinks a big hole in my finances that I didn't expect.

Is this normal?

It isn't normal, but happens quite often. HMRC usually can't give a reason why. You need to call then again (yes I know, but do it now rather than January) and ask them to look at why it hasn't been repaid. They should then tell you there was a flag on the account 'for some reason' and the money can now be refunded.

[snabzter]

Did you register for self assessment again this year? The reason for asking is that I had a similar issue earlier this year and I called HMRC to get it sorted out (took about 40mins to get through) and they said it was because I hadn't registered for the year. An odd one but it was paid over to my account in a couple of days after phoning.

[MaxFromage]

You only register for self-assessment once to get a UTR. Then it stays with you. Do you mean you had a break from submitting tax returns for a year or more and then came back to it? This could legitimately mean a hold is put on any refunds.

[Macneil]

I registered an official complaint regarding a long wait for a tax rebate for pension payments. It was the complaint that was acted on first. The woman who called said she’d “been downstairs” and that the refund had been processed and I logged on with bank details and got the money in 5 days.

[CSLM3CSL]

My considerably smaller refund was paid into my account in a matter of days so maybe the amount is the issue. It could be as simple as agents are only authorised to issue refunds of a certain amount.

[alscar]

Our returns were filed in November and tax due back was in our nominated account within 2 weeks of acceptance. In fact money back before official “ confirmation” received by me - £7,800 for me and £200 for my wife.

[98elise]

Thanks all. It sounds hit an miss!

I'll call them when they are back open but I don't hold out much hope. I called them when the cock up was occurring (pension payments) and the guy a spoke to really didn't seem to grasp the situation even though it was quite simple. My tax code changed 3 times in a week, so I gave up and just hoped to resolve it though S.A (which I do yearly anyway).

[simon_harris]

I finally did my SA just before Christmas, waited the 3 days to apply for the refund and had it in my bank account within 2 days. Just a bit less than £4K so not a small amount.

[Kirkmoly]

It does all seem a bit random. I’ve never seen this “apply for a refund” thing in 12 years of on-line filing. I just hit the submit return button and log-off. Refunds appear automatically in my bank account.

[98elise]

Kirkmoly said:

It does all seem a bit random. I’ve never seen this “apply for a refund” thing in 12 years of on-line filing. I just hit the submit return button and log-off. Refunds appear automatically in my bank account.

It's the first time in years that I've been owed a refund. I looked into the process and it appeared that you're supposed to get a P800 letter in September. I didn't get that so checked the self assessment website (Government Gateway) and there's an option to request a repayment. I've been through that twice now and no repayment has been made.

It makes far more sense that an on-line SA should result in an automatic repayment. Why are we working with letters and form filling in a digital world? Even having to wait weeks for it to processed seems very odd.

HMRC seem keen to make everything digital/automated except when they owe you money!

[MaxFromage]

98elise said:

Thanks all. It sounds hit an miss!

I'll call them when they are back open but I don't hold out much hope. I called them when the cock up was occurring (pension payments) and the guy a spoke to really didn't seem to grasp the situation even though it was quite simple. My tax code changed 3 times in a week, so I gave up and just hoped to resolve it though S.A (which I do yearly anyway).

It'll get sorted. Ignore all the noise on this thread, I deal with hundreds of returns a year. Like I said you have a block on a refund being issued. Only a call can sort it. If they have to investigate before they can refund they will (time to do it is anyone's guess), but you will get it eventually.

[98elise]

MaxFromage said:

98elise said:

Thanks all. It sounds hit an miss!

I'll call them when they are back open but I don't hold out much hope. I called them when the cock up was occurring (pension payments) and the guy a spoke to really didn't seem to grasp the situation even though it was quite simple. My tax code changed 3 times in a week, so I gave up and just hoped to resolve it though S.A (which I do yearly anyway).

It'll get sorted. Ignore all the noise on this thread, I deal with hundreds of returns a year. Like I said you have a block on a refund being issued. Only a call can sort it. If they have to investigate before they can refund they will (time to do it is anyone's guess), but you will get it eventually.

I haven't had any breaks in submitting self assessments though. I've done them for at least the past 20 years.

If there is a block on the refund surely they should let me know?

[Kirkmoly]

98elise said:

It's the first time in years that I've been owed a refund. I looked into the process and it appeared that you're supposed to get a P800 letter in September. I didn't get that so checked the self assessment website (Government Gateway) and there's an option to request a repayment. I've been through that twice now and no repayment has been made.

It makes far more sense that an on-line SA should result in an automatic repayment. Why are we working with letters and form filling in a digital world? Even having to wait weeks for it to processed seems very odd.

HMRC seem keen to make everything digital/automated except when they owe you money!

There seem to be two different processes. I get a refund most years but have never had a P800 letter or any kind of letter.

When I have filled in the on-line forms a button asks me if I want too see my full tax calculation. That shows me the detailed calculation and confirms the refund due. I usually save that as a pdf. I can’t see why any further correspondence or action would be necessary.

[98elise]

Kirkmoly said:

98elise said:

It's the first time in years that I've been owed a refund. I looked into the process and it appeared that you're supposed to get a P800 letter in September. I didn't get that so checked the self assessment website (Government Gateway) and there's an option to request a repayment. I've been through that twice now and no repayment has been made.

It makes far more sense that an on-line SA should result in an automatic repayment. Why are we working with letters and form filling in a digital world? Even having to wait weeks for it to processed seems very odd.

HMRC seem keen to make everything digital/automated except when they owe you money!

There seem to be two different processes. I get a refund most years but have never had a P800 letter or any kind of letter.

When I have filled in the on-line forms a button asks me if I want too see my full tax calculation. That shows me the detailed calculation and confirms the refund due. I usually save that as a pdf. I can’t see why any further correspondence or action would be necessary.

That's how I thought it would work. The amount I'm owed is there, and it's legitimately overpaid. I don't see why it's not been refunded to me.

I'll call them as soon they are open.

[MaxFromage]

98elise said:

I haven't had any breaks in submitting self assessments though. I've done them for at least the past 20 years.

If there is a block on the refund surely they should let me know?

Unfortunately you're trying to apply logic to HMRC. I'm afraid they are utterly unfit for purpose. The majority of those working for HMRC try, but are often woefully undertrained/have such a narrow field of understanding that as accountants, it can be hard to get them to understand what you're trying to achieve.

No-one is there checking things are done right in the background, so if a refund is blocked, nobody will look until you ask them to. Either way, give them a call and that will start the process of getting your money released.

[Eric Mc]

HMRC is stuggling to function at the moment. Many, many people are not seeing refunds they should have had months ago. The National Audit Office issued a damning rerport on the performance of HMRC only a few weeks ago.