Delays in Repayments of Overpaid Tax

22nd November 2021

Some tax payers are experiencing delays in repayments of overpaid tax.

HMRC has advised that this is due to additional checks to prevent fraudulent claims.  Most likely linked to ongoing SEISS fraud audits, these additional steps include identification verification checks and are in the form of two letters currently circulating:

  • One letter informs the tax payer that HRMC has reason to believe their UTR number may have been used to submit a fraudulent claim, and requests that the tax payer confirm particulars information
  • The second letter asks the recipient to complete an R38 form, before submitting along with proof of ID, address and other information, such as whether an agent was involved in the submission and the fees they charged.

Tax payers are not legally obliged to provide any of the additional information requested, but repayments may be delayed or even cancelled if they do not and they may be removed from the Self Assessment Scheme.   This would mean that all future Self Assessment submissions could potentially be refused subject to an enquiry.

HMRC has allocated additional resource to tackling the backlog of repayments, and expects service levels to have restored somewhat to normal by the end of November, at which point all correspondence received related to repayments will be actioned within 30 days of their receiving it.

If you have requested a repayment prior to November and have still not received your repayment by the end of November, please contact either your agent or HMRC directly.


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All information correct at time of going to print/live and on the best knowledge and understanding of the author at the time. This article is for general information only and does not constitute financial advice or recommendations for individual circumstances. No responsibility is taken for any actions taken on the base of the information within this article.

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