Thousands missing out on £144 million in tax refunds due to common mistake

• Hundreds of thousands of UK taxpayers are missing out on an average of £800 in HMRC refunds due to uncashed cheques.
• Last year, HMRC issued 1.7 million cheques for rebates, with 178,180, totalling £144 million, remaining uncashed.
• Until 2024, HMRC would issue cheques if taxpayers did not respond to refund letters within 21 days, leading to many going uncashed.
• HMRC is transitioning to a new system, aiming to reduce cheque issuance and contact customers through other means unless a cheque is specifically requested.
• Although cheques expire after six months, a replacement can be requested, and taxpayers are advised to opt for bank transfers (BACS) for quicker and more secure refunds.

IN FULL

More than 170,000 miss out on £800 HMRC tax rebate due to ‘problematic’ system