HMRC Refund Delays Leave UK Taxpayers Waiting Over a Year

Published: 17 January 2026. The English Chronicle Desk. The English Chronicle Online

Hundreds of taxpayers across the UK are facing prolonged financial strain as HM Revenue and Customs takes more than a year in some cases to repay overpaid tax and national insurance contributions, raising serious questions about fairness, accountability and administrative efficiency within the tax authority.

An investigation has found that refunds which once took a matter of weeks are now routinely delayed for many months, with some stretching beyond a full year. For individuals and families already under pressure from rising living costs, these delays have forced people to borrow money, postpone major life events and endure significant emotional stress.

Simon Hughes, a self-employed construction worker, is one of those caught in the backlog. After submitting a claim for £4,550 in overpaid tax in April last year, he is still waiting. He says repeated attempts to get answers from HMRC have left him frustrated and powerless. The delay has directly affected his personal life, as he and his wife have been unable to afford their honeymoon. According to Hughes, the most recent communication from HMRC suggested he may not receive his refund until July 2026, more than two years after submitting the claim. He argues that the system feels fundamentally unfair, noting that taxpayers face penalties and interest charges for late payments, while HMRC can delay refunds without meaningful consequence.

Professional bodies say his experience is far from unique. The Institute of Chartered Accountants in England and Wales has warned that “significant backlogs” within HMRC are now harming both individuals and businesses. According to the institute, HMRC’s operational focus on responding to new correspondence has resulted in older refund claims being pushed further down the queue, leaving long-standing cases unresolved.

Lindsey Wicks, a senior technical manager at the ICAEW, points to HMRC’s own service updates, which show that some repayment claims relating to employment or pensions submitted as far back as January 2025 are still being processed. Self-assessment refunds requested in March 2025 also remain outstanding in many cases. Wicks argues that efforts should be concentrated on clearing these historic backlogs rather than prioritising newer claims.

The consequences of these delays are especially severe for pensioners living overseas, many of whom rely on timely refunds to meet everyday living costs. Jill Eden, an 83-year-old British pensioner residing in the Netherlands, has been waiting for a £48,000 rebate. She pays tax on her pension income in the Netherlands, yet HMRC has also taxed the same income since her husband died two years ago, deducting around £2,100 each month. Eden submitted a refund claim under the UK–Netherlands double taxation treaty in April and was told it would be resolved by October. Months later, she has received no response and says it is nearly impossible to reach HMRC by phone. She has been forced to borrow money while waiting and fears that her age may work against her, as unresolved claims could remain unpaid for years after her death.

Another pensioner, Jane Leigh, who lives in France, described a similarly distressing experience. After cashing in her UK pension, she overpaid £78,000 in tax and submitted a refund claim under double taxation rules. Although she was informed in September that her refund had been approved, seven months after her application, the money has still not arrived. Leigh says she has repeatedly been told that the cheque was sent, only to be given conflicting explanations for why it has not reached her. Each time, she is asked to wait another six weeks, with no clear resolution in sight.

The disparity between how HMRC treats late payments and delayed refunds has become a growing source of anger. Taxpayers who miss deadlines are charged interest at the Bank of England base rate plus four percentage points, currently amounting to 7.75 per cent. By contrast, when HMRC delays a refund, it pays interest at a rate one percentage point below the base rate, a figure many see as inadequate compensation for months or years of waiting.

Employees with multiple jobs are also reporting extended delays, particularly in relation to national insurance overpayments. Kabir Das, who works across several NHS departments, expected his NIC refund last April but was later informed it would not be processed until September this year. University professor Linda Ashcombe, who holds two roles, has been waiting since April for a £1,000 refund. For more than 15 years, her overpayments were routinely returned within six weeks. This time, she was initially told to expect action by November, only for HMRC’s online tracker to later suggest March 2026. Call centre staff, she says, have been unable to explain the delay or offer any practical help.

The growing volume of complaints has prompted scrutiny from consumer advocates and the media. After cases were referred by journalists, HMRC agreed to investigate, and many affected individuals have since received their refunds. However, critics argue that this reactive approach leaves countless others still waiting, particularly those without the time, resources or platform to escalate their cases.

In response to the criticism, HMRC acknowledged delays and apologised to those affected. A spokesperson said the department processes millions of refund claims each year and that the majority are paid promptly. They added that HMRC is investing £500m in digital services aimed at reducing waiting times and ensuring taxpayers pay the correct amount initially, thereby reducing the need for refunds. The department maintains that these reforms will improve efficiency in the long term, though it has offered limited detail on how quickly existing backlogs will be resolved.

For now, taxpayers and professional bodies remain unconvinced. They argue that delayed refunds undermine trust in the tax system and place an unfair burden on individuals who have already paid more than they owe. As cost-of-living pressures continue and confidence in public institutions is tested, the growing backlog at HMRC risks becoming not just an administrative failure, but a broader issue of justice and accountability.