HMRC has clarified its rules around when it issues tax refunds. A taxpayer contacted the authority as they had come across an issue in receiving their refund.
Guidance on the Government website explains that if you have paid too much or too little tax by the end of a tax year, HMRC will often write to you about the amount. The tax year runs from April 6 to April 5.
In cases where you have paid the wrong amount of tax, HMRC may send you a tax calculation letter, also known as a P800, or a simple assessment letter. The guidance states: "This will tell you how to get a refund or pay tax you owe."
You will only be sent one of these letters if you are employed or if you are receiving a pension. These letters typically go out between June and March of the following tax year.
In cases where a person is registered for self assessment, you will not receive a letter. This is because your bill will automatically be adjusted if you have underpaid or overpaid tax.
Tax refund sent to wrong addressA taxpayer contacted HMRC as they had put in a claim for a tax refund to be sent to them as a cheque in the post. But unfortunately, they had forgot to update their address to their new one.
They said they had just changed their address since realising the mistake, and wanted to know if the refund would be sent to their new address or the old one.
HMRC told the customer: "If you have updated your address today, it's most likely the refund has been issued to your previous address."
The person was shocked to be told this and asked how they could get the cheque sent to the correct address.
HMRC shared this guidance: "You can contact our helpline to inform them of this and we can cancel the original cheque and issue a replacement cheque. Please be aware it can take longer to receive your refund due to this."
The customer then asked what the helpline number was, with HMRC responding that the number to call is 0300 200 3300. The group also told the customer they could try using the webchat tool.
HMRC said: "Please type 'adviser' and it should open a chat when an adviser is available."
