Some taxpayers are waiting more than a year for HM Revenue and Customs to refund overpaid tax and national insurance contributions, according to an investigation by Guardian Money. Refunds that previously took weeks are now taking up to 10 months or longer, with significant backlogs blamed for the delays.
Self-employed construction worker Simon Hughes said he and his wife cannot afford a honeymoon until he receives £4,550 of overpaid tax claimed last April. HMRC told him he might wait until July 2026. The Institute of Chartered Accountants in England and Wales said the backlogs are hurting businesses and individuals, with older claims pushed to the back of the queue.
British pensioner Jill Eden, 83, living in the Netherlands, said she had to borrow money while waiting for a £48,000 rebate. She submitted a claim in April under the double taxation treaty but has heard nothing. Another expat, Jane Leigh in France, was told her £78,000 refund was approved in September but still awaits payment.
Employees with multiple jobs are also affected. Kabir Das, who works across NHS departments, was told his NIC refund would not be processed until September, while university professor Linda Ashcombe is overdue £1,000 since April. HMRC said it would investigate all cases referred by Guardian Money, and most have since received refunds.
HMRC apologised for delays and said it is investing £500m in digital services to speed up refunds. Critics note that while taxpayers face stiff penalties for late payments, HMRC pays compensation at a lower interest rate when it misses targets.
