HMRC stops automatic repayments for overpaid tax

The Institute of Chartered Accountants in England and Wales (ICAEW) has warned taxpayers who have overpaid income tax that from now on they will need to request their repayment.

HMRC is checking the tax records of PAYE income taxpayers to find out whether they paid the correct amount of tax for 2023-24. Where the amount of tax paid is incorrect the taxpayer will receive a tax calculation from HMRC showing either a repayment or an amount due. 

In the past when a taxpayer had overpaid income tax HMRC would have sent them a calculation showing the repayment due. This could be claimed online but if it had not been claimed within 21 days HMRC would have automatically issued a cheque. HMRC has decided to stop automatically issuing cheques for PAYE repayments.

Caroline Miskin senior technical manager at the ICAEW said: ‘PAYE...