More than 178,000 UK taxpayers are failing to receive tax rebates worth approximately £800 each, after cheques issued by HM Revenue and Customs (HMRC) went uncashed. According to figures reported by The i Paper, HMRC issued 1,746,720 cheques last year, of which 178,180 were never cashed, leaving a combined £144 million unclaimed.
Experts have criticised the continued use of cheques for tax refunds in a digital age. Robert Salter, a partner at tax and accountancy firm Blick Rothenberg, said: 'It is certainly a bit problematic that HMRC continues to use cheques to settle tax refunds in so many cases.' Shaun Moore, tax and financial planning expert at Quilter, added that overpayments are common due to job changes or incorrect tax codes, and that a faster shift towards digital processes would help ensure refunds reach people more reliably.
An HMRC spokesperson stated that the vast majority of PAYE repayments are now issued via bank transfer, which is the default option. They added: 'Customers can still request to receive their repayment via cheque and it's their responsibility to cash it if they choose this method.' The data highlights ongoing inefficiencies in the tax system's handling of refunds.
