Can I cash a tax refund sent to me in error?

mermaidtail

If I cash a cheque from HMRC for £500 (Tax Refund) which I am not sure I'm entitled to what would be likely to happen? I think HMRC may have sent me the refund in error. Some people are just telling me to cash it as it will likely never realise its mistake, is this true?

I am not a tax payer as I do not currently work.

Dazed_and_C0nfused

When they realise it's wrong they will send you a bill to pay the £500 back.

Your problems will start if you don't then pay the demand.

mermaidtail

Dazed_and_C0nfused said:

When they realise it's wrong they will send you a bill to pay the £500 back.

Your problems will start if you don't then pay the demand.

How likely is it that they will eventually realise their mistake?

molerat

mermaidtail said:

Dazed_and_C0nfused said:

When they realise it's wrong they will send you a bill to pay the £500 back.

Your problems will start if you don't then pay the demand.

How likely is it that they will eventually realise their mistake?

50/50 chance.

Many years ago early on in the tax year I claimed an in year rebate.  A couple of years later, when that year was reconciled, I received a cheque followed by a letter telling me it was for that year's overpaid tax.  I called up and the answer was ... the computer says (and as we all know you can't argue with the computer).  They have never asked for it back. It eventually paid for most of the class 3 I needed

mermaidtail

50/50 is still quite a high chance that they will chase me up for it. Its not a lot of money but I'm worried I just won't have it if they come looking for it in future.I wish they had never sent the cheque and put me in this position.

Nearlyold

Have you not had any explanatory paperwork? How long since you were working, was it PAYE and did you stop working part way through a Tax Year?

sheramber

Have you checked your personal tax account to see if it is explained on there.

Silvertabby

molerat said:

mermaidtail said:

Dazed_and_C0nfused said:

When they realise it's wrong they will send you a bill to pay the £500 back.

Your problems will start if you don't then pay the demand.

How likely is it that they will eventually realise their mistake?

50/50 chance.

Many years ago early on in the tax year I claimed an in year rebate.  A couple of years later, when that year was reconciled, I received a cheque followed by a letter telling me it was for that year's overpaid tax.  I called up and the answer was ... the computer says (and as we all know you can't argue with the computer).  They have never asked for it back. It eventually paid for most of the class 3 I needed

After we left the RAF, we both took several months 'chill out' time before taking other jobs.

As we were both in receipt of RAF pensions, I kept a very keen eye on our taxes.

Mine was fine - but Mr S received  a £500 rebate through his new salary.  He rang HMRC, to be told that 'they don't make mistakes'.

They never did ask for it back.

csgohan4

OP don't take a chance, clarify and if they say it is not a mistake, the recorded phone call is there