In a worrying trend, many taxpayers across the UK are facing lengthy delays in receiving their income tax rebates from HM Revenue and Customs (HMRC), with some waiting over a year for their refunds. This backlog is having a significant impact on both businesses and individuals, leaving some struggling to make ends meet.
An investigation by The Update Desk has uncovered numerous cases of taxpayers facing protracted wait times for their rebates. Self-employed construction worker Simon Hughes* said he and his wife have had to postpone their honeymoon until he receives £4,550 in overpaid tax that he claimed last April, with HMRC informing him he may have to wait until July 2026 to get the money.
Similarly, British pensioner Jill Eden*, who lives in the Netherlands, had to borrow money while waiting for a £48,000 rebate from HMRC. “I pay Dutch tax on my pension and, since my husband died two years ago, HMRC has also taxed it at the rate of £2,100 a month,” she said. “I submitted a refund claim in April under the double taxation treaty and was told it would be dealt with by October, but I’ve heard nothing, and it’s impossible to contact it by phone.”
The Institute of Chartered Accountants in England and Wales (ICAEW) has expressed concern over the “significant backlog” faced by HMRC, which it says is having a negative impact on both businesses and individuals. Lindsey Wicks, a senior technical manager at ICAEW, noted that self-assessment repayments are still being processed for requests made in March 2025, and efforts should be focused on clearing the old backlog rather than responding to new correspondence.
HMRC has acknowledged the issue, stating that it is investing £500 million in digital services to speed up refunds. However, the tax authority’s own service updates show that there are claims being processed for repayment of tax from employment or pensions dating back to January 2025.
The situation has led to frustration among taxpayers, who feel that they are being treated unfairly. University professor Linda Ashcombe*, who holds two roles, is owed £1,000 since submitting a request in April, despite having her overpayments refunded within six weeks for the past 15 years.
“For 15 years I’ve had my overpayment refunded within six weeks. This year I was first told my request should be acted upon by November,” Ashcombe said. “In December, HMRC’s online tracker said March 2026. Call centre agents say they can’t understand the delay or do anything about it. What the hell is going on?”
HMRC has stated that it will investigate all the cases referred to it by The Update Desk, and since the publication’s inquiry, most of the affected taxpayers have received their refunds. However, the broader issue of the backlog remains a concern, and the tax authority has pledged to continue its efforts to cut wait times and improve its digital services to ensure a more efficient and timely processing of tax rebates.
*Names have been changed.
