HMRC 6 month backlog on refunds? Anyone else?

soulsaver

After submitting 23/24 SIPP contribution figure (via SA) to HMRC in Oct, my OH's account is showing that she is due a (correct) c.£2k refund to cover the additional relief for a HR tax payer.

She requested the refund Oct 28 and has the reference (&screen shots) to evidence it.
The standard statement indicates it should be received within 2 weeks, unless paused for security checks.

There is no acknowledgement in her account of the refund request or by email/message and is still showing overpaid. No notification of anything else, no security stop etc.

I gave up a couple of times, with the prolonged wait on the phone, but recently I managed to get picked up by the representatives' CS, rather than personal.

She was about to transfer me to the correct dept but warned that I'd still be in for a protracted wait and added HMRC were advising there is a 6 month 'delay' on refunds. 

I didn't fancy another protracted wait to be told the same thing, and plan to have another go after month end when things at HMRC maybe less demanding.

In the meantime I've come here to see if anyone else is in the same boat?

I've not seen anyone else reporting this, so I'm wondering about it's validity? And/or any advice anyone has to offer?

 

Dazed_and_C0nfused

soulsaver said:

After submitting 23/24 SIPP contribution figure (via SA) to HMRC in Oct, my OH's account is showing that she is due a (correct) c.£2k refund to cover the additional relief for a HR tax payer.

She requested the refund Oct 28 and has the reference (&screen shots) to evidence it.
The standard statement indicates it should be received within 2 weeks, unless paused for security checks.

There is no acknowledgement in her account of the refund request or by email/message and is still showing overpaid. No notification of anything else, no security stop etc.

I gave up a couple of times, with the prolonged wait on the phone, but recently I managed to get picked up by the representatives' CS, rather than personal.

She was about to transfer me to the correct dept but warned that I'd still be in for a protracted wait and added HMRC were advising there is a 6 month 'delay' on refunds. 

I didn't fancy another protracted wait to be told the same thing, and plan to have another go after month end when things at HMRC maybe less demanding.

In the meantime I've come here to see if anyone else is in the same boat?

I've not seen anyone else reporting this, so I'm wondering about it's validity? And/or any advice anyone has to offer?

 

I presume what you mean is the end result of her Self Assessment calculation is that she had overpaid ~£2k for the 2023-24 tax year.  Which you happen to know is primarily the result of her RAS pension contributions.

Was this a return requested by HMRC or an unsolicited one?

soulsaver

Unsolicited. It's purpose was to claim the additional relief.

Dazed_and_C0nfused

soulsaver said:

Unsolicited. It's purpose was to claim the additional relief.

That is possibly the root cause of the issue then, see the voluntary return category here.

https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam113010

I suspect had she just followed the correct process she would have long since had the refund.

soulsaver

I don't follow. What is the correct process? I couldn't see any clear alternative to the method she chose to claim the rebate as a 40%er?

Why does the system calculate an overpayment,  offer a claim the refund process and then not process it?

Dazed_and_C0nfused

soulsaver said:

I don't follow. What is the correct process? I couldn't see any clear alternative to the method she chose to claim the rebate as a 40%er?

Why does the system calculate an overpayment,  offer a claim the refund process and then not process it?

Self Assessment is for people who meet the criteria to complete a tax return.

I don't think claiming higher rate relief on RAS pension contributions has ever been a reason to file a return.

Did you read this page on gov.uk?

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

A letter with evidence of the contributions would have been sufficient.

The refund will be processed.  Or HMRC will open an enquiry into the return.  You are just having to wait a bit longer as HMRC seem to have implemented a system to try and prevent people being over-repaid.

However given the delay already experienced I would say you (your wife) are justified to chase this up.

soulsaver

Dazed_and_C0nfused said:

soulsaver said:

I don't follow. What is the correct process? I couldn't see any clear alternative to the method she chose to claim the rebate as a 40%er?

Why does the system calculate an overpayment,  offer a claim the refund process and then not process it?

Self Assessment is for people who meet the criteria to complete a tax return.

I don't think claiming higher rate relief on RAS pension contributions has ever been a reason to file a return.

Did you read this page on gov.uk?

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

A letter with evidence of the contributions would have been sufficient.

The refund will be processed.  Or HMRC will open an enquiry into the return.  You are just having to wait a bit longer as HMRC seem to have implemented a system to try and prevent people being over-repaid.

However given the delay already experienced I would say you (your wife) are justified to chase this up.

She can't recall how she got got there, other than as an alternate to the unacceptably long wait on the phone.

Either she didn't find her way to that page (thanks) or misunderstood something that suggested using SA was an acceptable way to claim the additional relief.

Maybe she can be forgiven for thinking HMRC accepting the return, producing an overpayment calculation,  producing a repayment claim form and issuing a claim reference, suggested to her that using the SA route seemed acceptable, if not correct.

Thanks for your help, we'll get back on the case.

fionaandphil

I'm PAYE, I would normally get  a refund in September or October. It did say it would be resolved by January but is now showing as due to be resolved by the end of March 2025. This is for the 2023/24 tax year. I think there is just a big backlog

silvercar

OH had to go back into his self assessment account and request the refund. Only took about 2 weeks.

fionaandphil

I've logged in a few times to claim it but they haven't even calculated it. I used to do self assessment and would have had it by now if I'd still had to submit it myself. 

soulsaver

@Dazed_and_C0nfused
You appear to have the insider knowledge on these things, and your replies are well appreciated.

In your opinion what would be the best way to progress this? Is it just start early and be prepared for a long wait on the phone? Or any better suggestions?