HMRC has issued a fresh update regarding the timeline for tax refunds to appear in bank accounts, clarifying the rules after a taxpayer inquired about their pension-related claim. The individual had submitted an income tax refund request and noticed that, after a week, the status still showed as "in progress."
Taking to social media to message the tax authority, they asked: "I was just enquiring as to how long it may take to be settled." HMRC first asked how the claim was submitted, to which the taxpayer responded that it was done online. For those who believe HMRC owes them money, the Government website offers a tool to check eligibility and claim a refund.
HMRC then asked whether the refund pertained to self assessment or pay as you earn. The taxpayer clarified that it involved a lump sum withdrawal from a pension where they were overtaxed. Based on these details, HMRC informed them: "It should normally take around 30 days from the date the claim was received." The taxpayer noted that it had been just over six weeks in their case, so they planned to wait another week and then call if the funds had not arrived.
Why Could You Pay the Wrong Amount of Tax?
Overpaying tax can happen for several reasons. You may be assigned an incorrect tax code if HMRC lacks up-to-date information about you. Changes in circumstances, such as starting a new job, can also lead to incorrect tax payments.
If you receive a pension or are employed and have overpaid tax by the end of the tax year on April 5, HMRC will contact you. You will receive either a tax calculation letter (P800) or a simple assessment letter, which are sent out between June and March of the following tax year. If you are registered for self assessment, your bill will be adjusted automatically, and you will not receive these letters.
