HM Revenue and Customs (HMRC) has issued a detailed update on its procedures for issuing tax refunds, following a specific case where a taxpayer encountered difficulties receiving their money. The clarification outlines exactly when and how individuals will be contacted if they have paid an incorrect amount of tax.
When and How HMRC Will Contact You
According to the official government guidance, if you have paid too much or too little tax by the end of the tax year, HMRC will typically write to you about the sum owed. The tax year runs from April 6 to April 5. For those in employment or receiving a pension, HMRC may send a tax calculation letter, known as a P800, or a simple assessment letter. These letters, which explain how to get a refund or pay any tax you owe, are usually sent between June and March of the following tax year.
However, the process differs for those registered for Self Assessment. If you are within the Self Assessment system, you will not be sent a letter. Instead, your tax bill is adjusted automatically if you have underpaid or overpaid tax.
A Cautionary Tale: The Importance of an Updated Address
The HMRC update was prompted by a real-life case where a taxpayer faced problems receiving their refund. The individual had requested their tax refund be sent via cheque but had forgotten to update their address with HMRC. Consequently, the cheque was posted to their old address.
After realising the error and updating their address details, the taxpayer contacted HMRC to ask if the refund would be sent to their new or previous address. An HMRC adviser responded, stating, "If you have updated your address today, it's most likely the refund has been issued to your previous address."
How to Resolve a Payment Issue
Surprised by this, the customer asked how to get the cheque sent to the correct location. HMRC provided clear advice for anyone in a similar situation. You should contact the HMRC helpline to report the issue. The department can then cancel the original cheque and issue a replacement to the correct address.
HMRC cautioned that this process can delay the receipt of your refund. The helpline number provided was 0300 200 3300. Alternatively, the tax office suggested using the webchat tool on the GOV.UK website, advising users to type 'adviser' to open a chat when a representative is available.
This incident underscores the critical importance of ensuring your contact details are current with HMRC to avoid unnecessary delays and complications in receiving any money you are owed.
