HMRC may not follow repayment instructions

HMRC will issue repayments to a taxpayer’s debit or credit card even if they have supplied their bank account details on their self-assessment tax return. This is because in April 2015 HMRC systems were brought into line with banking industry standards so that where possible repayments are made to the last credit or debit card used.

HMRC explains how it will make a tax repayment on the tax return form and notes and the guidance says ‘a count will be kept of repayment amounts made following a card payment so that multiple repayments to card can only be made up to the limit of the payment received’. But the Low Incomes Tax Reform Group is warning that some taxpayers could be caught out. This could cause hardship for example for someone who has lost their job since last paying their tax bill and run...