Some people are waiting a year or more for HM Revenue and Customs to refund overpaid tax and national insurance contributions (NICs).
In some cases, refunds that were previously processed within a few weeks are taking 10 months or more, an investigation by Guardian Money has found.
Self-employed construction worker Simon Hughes* said he and his wife cannot afford a honeymoon until he receives £4,550 of overpaid tax he claimed last April. “The last time I contacted HMRC, it said I could be waiting until July 2026,” he adds. “When people owe it money, they get fined for late payment, but when it owes money, it can take as long as it likes without penalty.”
The Institute of Chartered Accountants in England and Wales (ICAEW) said “significant backlogs” were having a negative impact on businesses and individuals, and HMRC’s focus on response targets for current claims left older requests at the back of the queue.
HMRC’s own service updates show there are claims being processed for repayment of tax from employment or pensions dating back to January 2025, said Lindsey Wicks, an ICAEW senior technical manager looking after tax policy. “Self-assessment repayments are still being processed for requests made in March 2025. Efforts should be focused on clearing the old backlog, rather than responding to new correspondence.”
British pensioner Jill Eden*, who lives in the Netherlands, said she had to borrow money while waiting for a £48,000 rebate from HMRC.
“I pay Dutch tax on my pension and, since my husband died two years ago, HMRC has also taxed it at the rate of £2,100 a month,” she said. “I submitted a refund claim in April under the double taxation treaty and was told it would be dealt with by October, but I’ve heard nothing, and it’s impossible to contact it by phone. I am 83 and wondering if HMRC thinks my age is to its advantage because, once I die, it will be able to hang on to this money for years.”
Jane Leigh*, who lives in France, was told that the refund of £78,000 in tax due after she cashed in her UK pension had been approved in September, seven months after she submitted her claim under double taxation rules. She told Guardian Money she was still waiting for the refund. “I keep being told the cheque has been sent, then given different reasons why it hasn’t arrived,” she says.
“Each time I’m told to wait six weeks for progress.”
While taxpayers face stiff penalties if they are late with payments, HMRC pays modest compensation when it misses its own targets. Taxpayers are charged interest calculated at the Bank of England base rate plus 4% (currently 7.75%), while HMRC is only liable for interest at 1% below the base rate.It has also emerged that some employees with more than one job are reporting long waits for refunds of overpaid NICs.
Kabir Das, who works across different NHS departments, was expecting his refund last April but said he was told his claim will not be processed until this September.
University professor Linda Ashcombe*, who holds two roles, is overdue £1,000 since submitting a request in April.
“For 15 years I’ve had my overpayments refunded within six weeks. This year I was first told my request should be acted upon by November,” Ashcombe said. “In December, HMRC’s online tracker said March 2026. Call centre agents say they can’t understand the delay or do anything about it. What the hell is going on?”
HMRC said it would investigate all the cases referred to it by Guardian Money. Since the paper got in touch, most have received their refunds.
It added: “We receive millions of tax refund claims every year, and the vast majority are paid promptly, but we apologise to those experiencing a delay. We’re committed to cutting wait times and are investing £500m in digital services to speed up refunds as well as help customers pay the right tax first time so fewer refunds are necessary.”
* Names have been changed
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