As part of the July 2024 Employer bulletin, HMRC have confirmed that the automated issuing of refund cheques to tax payers have stopped with the tax payer being required to now take action.
Tax calculation repayments for PAYE
HMRC has confirmed that it is changing the way it repays the majority of its PAYE (Pay As You Earn) taxpayers who are eligible to claim their repayment online.
Currently, any employees who receive a tax calculation letter and do not claim the repayment online automatically receive a cheque after 21 days. Since the 31st May 2024 this has changed. Cheques are no longer issued automatically. Instead, taxpayers need to take an action to receive their repayment.
They can claim their repayments at tax overpayments and underpayments.
They will also be able to request a cheque through this process if preferred.
Instructions on how to claim will be available when they receive their tax calculation letter. This will include alternative routes for those who cannot claim their repayment online.
Comment
Initial thoughts are that this change may catch a few taxpayers out, not realising that they will no longer receive an automated cheque payment, but have to action the reclaim themselves.
Of course, those that do are likely to receive a faster electronic pay,ent, however, the fear is that many, especially those not aware, may have been waiting without knowing they needed to do anything.
PAYadvice.UK 10/7/2024