HMRC taking more than a year to pay out tax rebates

"Some people are waiting a year or more for HM Revenue and Customs to refund overpaid tax and national insurance contributions (NICs). In some cases, refunds that were previously processed within a few weeks are taking 10 months or more, an investigation by Guardian Money has found. Self-employed construction worker Simon Hughes* said he and his wife cannot afford a honeymoon until he receives 4,550 of overpaid tax he claimed last April."

"The Institute of Chartered Accountants in England and Wales (ICAEW) said significant backlogs were having a negative impact on businesses and individuals, and HMRC's focus on response targets for current claims left older requests at the back of the queue. HMRC's own service updates show there are claims being processed for repayment of tax from employment or pensions dating back to January 2025, said Lindsey Wicks, an ICAEW senior technical manager looking after tax policy."

"I pay Dutch tax on my pension and, since my husband died two years ago, HMRC has also taxed it at the rate of 2,100 a month, she said. I submitted a refund claim in April under the double taxation treaty and was told it would be dealt with by October, but I've heard nothing, and it's impossible to contact it by phone."

HM Revenue and Customs is taking up to a year or more to refund overpaid tax and national insurance contributions, with some repayments now taking 10 months or longer instead of weeks. Delays have left individuals and businesses unable to access funds and forced some to postpone major expenses or borrow money. The Institute of Chartered Accountants in England and Wales reports significant backlogs harming taxpayers and says prioritizing response targets for recent claims has pushed older requests to the back of the queue. HMRC service updates show repayment claims from employment and pensions dating back to January 2025 and self-assessment requests from March 2025 remain outstanding.

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