HMRC delay, delay, delay...

aroominyork

On 5/10/21 my wife wrote to HMRC claiming higher rate tax relief for SIPP contributions. Gateway shows (and still shows) as estimated completion date of 29/10/21. This morning she phoned to chase this up. She was told the new completion date is 28/8/22. She asked how this could be questioned. The operator said it could not be questioned until the completion date passes, which is months away. She said the completion date is actually four months past. The operative agreed to flag it and expect a phone call within eight weeks.

What is going on? Is this the new normal for HMRC?

Dazed_and_C0nfused

It seems to be the case that there are ever increasing delays.

Which tax year is she claiming higher rate tax relief for?

aroominyork

Dazed_and_C0nfused said:

It seems to be the case that there are ever increasing delays.

Which tax year is she claiming higher rate tax relief for?

For 2020-21 (using carry forward allowances from the previous three years).

Dazed_and_C0nfused

Well the longer the delay the more (non taxable) interest HMRC will have to pay her for the delay.

It's only 0.5% but every little helps.

yorkiechick

Sadly it's absolutely the "new normal" for HMRC. As a tax agent, it's extremely frustrating!!!

aroominyork

So is the answer to complete an online self-assessment in future? I did this for myself last year and it provided an immediate calculation, but from memory it adjusted my tax code to reflect the refund I was due. I prefer to receive a cheque - is there a way to request that through the self-assessment?

Sea_Shell

Dazed_and_C0nfused said:

Well the longer the delay the more (non taxable) interest HMRC will have to pay her for the delay.

It's only 0.5% but every little helps.

When does interest become payable, and under what circumstances?

DH is waiting for over £4000 of reclaimed tax after it was deducted from a cashed in pension.  This tax year, form submitted on line, no other taxable earnings.

Gov.uk, still shows estimated completion of 8th December 21!

Dazed_and_C0nfused

Sea_Shell said:

Dazed_and_C0nfused said:

Well the longer the delay the more (non taxable) interest HMRC will have to pay her for the delay.

It's only 0.5% but every little helps.

When does interest become payable, and under what circumstances?

DH is waiting for over £4000 of reclaimed tax after it was deducted from a cashed in pension.  This tax year, form submitted on line, no other taxable earnings.

Gov.uk, still shows estimated completion of 8th December 21!

It's payable for repayments made after 31 January after the end of the tax year in question.

So any refund for 2020:21 will be due interest from 1 February 2022 to when it's eventually repaid.

Tax overpaid for 2021:22 won't attract interest until 1 February 2023.

Sea_Shell

Dazed_and_C0nfused said:

Sea_Shell said:

Dazed_and_C0nfused said:

Well the longer the delay the more (non taxable) interest HMRC will have to pay her for the delay.

It's only 0.5% but every little helps.

When does interest become payable, and under what circumstances?

DH is waiting for over £4000 of reclaimed tax after it was deducted from a cashed in pension.  This tax year, form submitted on line, no other taxable earnings.

Gov.uk, still shows estimated completion of 8th December 21!

It's payable for repayments made after 31 January after the end of the tax year in question.

So any refund for 2020:21 will be due interest from 1 February 2022 to when it's eventually repaid.

Tax overpaid for 2021:22 won't attract interest until 1 February 2023.

Ok thanks.

So once any internal 'KPIs" have been missed, there's probably no further incentive to pay quickly. ☹️