Thousands of taxpayers could miss out on tax refunds averaging £855 after HMRC changed its repayment process. From August 19, most people will no longer automatically receive repayments by cheque following multi-year P800 tax calculations. Instead, they must actively request the money themselves.
HMRC data shows that more than 730,000 tax refunds were left unclaimed last year, with the average repayment worth £855. At the same time, around 45 million PAYE records are being checked this year.
How the new repayment process works
The new system will not apply in exactly the same way to every P800 recipient. Some calculations will still state that HMRC intends to issue a cheque automatically. Taxpayers should therefore check the wording of their P800 carefully to see whether they have been told to make a claim.
Anyone who is instructed to request their repayment can do so through HMRC's online tax overpayments service. They will need the unique reference number shown on their P800 along with their National Insurance number.
Timing of repayments
For those who claim online, HMRC says the repayment should usually arrive within five working days. Choosing to receive the money by cheque can take considerably longer, with payments potentially taking up to six weeks.
Child Benefit reminder
It comes as HMRC also issued a Child Benefit alert as parents face losing payments if they don't act by August 31. Parents, guardians or anyone responsible for bringing up a child can usually claim Child Benefit, with payments available even if they are earning up to £60,000 a year.
However, the rules change when a child reaches 16, meaning families need to take action if their teenager plans to remain in education or start unpaid training. Child Benefit normally comes to an end on August 31 after a child turns 16. However, payments can continue if they stay in approved education or training. Parents must notify HMRC of their child's plans to make sure payments continue without interruption.
The reminder comes as thousands of teenagers receive their exam results and make decisions about their next steps, including whether to stay in education, begin an apprenticeship or enter training.
Child Benefit increased by 3.8% in April 2026. Families can now receive £27.05 a week for their first or only child and £17.90 a week for each additional child. For a family with two children, this means the weekly payment is £44.95. Over a year, that works out at £1,406.60 for one child, with a further £930.80 available for each additional child.
