Nearly 178,000 taxpayers failed to cash tax rebate cheques from HMRC last year, with each worth an average of £800, according to new figures. The total value of uncashed cheques reached £144 million, data obtained by The i Paper through a Freedom of Information request revealed.
HMRC issued 1,746,720 cheques in the last tax year, but 178,180 were never cashed. The most common reason for overpaying income tax is an incorrect tax code, which can happen when employers or pension providers apply the wrong code. HMRC typically contacts taxpayers via a P800 letter if they are due a refund, but if no response is received, a cheque is sent to the address on file.
Robert Salter, a tax partner at Blick Rothenberg, said it was “problematic” that HMRC continues to use cheques for refunds. A HMRC spokesperson stated that the majority of PAYE repayments are now made via bank transfer, which is the default option, but customers can still request a cheque and are responsible for cashing it.
Taxpayers can check their tax code on payslips, P45s, or via GOV.UK. Those who believe they have overpaid can claim refunds by contacting HMRC on 0300 200 3300 or through the HMRC app. Claims can be made for up to four additional years, and even longer in some cases if the error was not the taxpayer’s fault.
