Tax refunds no longer automatic

HMRC is no longer automatically issuing cheques to refund PAYE overpayments.

It is common for employed taxpayers to get to the end of the tax year and find that they have under- or over-paid income tax via PAYE. These discrepancies are calculated by HMRC at the end of the tax year and a tax calculation letter P800 is sent out to the individual.

Historically, HMRC would issue a cheque to any taxpayers who had received the P800 letter but not claimed their repayment online within 21 days. From 31 May 2024 cheques will no longer be automatically issued and taxpayers need to take action to claim their refund.

You might owe tax or be owed a refund because you:

  • were put on the wrong tax code, for example because HMRC had the wrong information about your income;
  • finished one job, started a new one and were paid by both in the same month;
  • started receiving a pension at work; or
  • received Employment and Support Allowance or Jobseeker’s Allowance.

If you have received a letter from HMRC telling you that you have overpaid PAYE, you can apply for a refund online. We can help you with this.