Why don't HMRC auto refund PPI

127001

A curious question:
Is there any reason why HMRC do not do this given they must have the info?.
My wife had a PPI refund back in 2018 and only just found out you can claim back the tax.  My wife has not worked for over 10 years so had a full tax allowance available in 2018, the PPI tax deducted was £731.
I know we have to fill out the R40 but surely they have all this info to refund auto?  If not, how do HMRC reconcile the tax payments received from PPI providers, does it just sit in one big tax account?
When the R40 is submitted they must check the figures to records to verify what is being submitted, or is it completely on trust? Surely not? so they must have the info, hence why can they not auto refund? 

I know over the years they have refunded me when I have over paid under PAYE in previous years.
Like I said a curious question

MovingForwards

Banks don't have / send NI details to HMRC when paying the money to them for different people, therefore the PPI isn't attributed to you / your wife / me or anyone else, that's why the overpaid tax has to be claimed back.

Part of the reclaim tax process is tallying the PPI tax to Joe / Joanna Bloggs and his / her tax record.

Is the simplest explanation.

[Deleted User]

If you were over your tax free interest earnings limit or weren't entitled to any, and they refunded you automatically you could end up owing them money. HMRC and the banks don't know if that applies, hence you request it back rather than automatic refund.