Taxpayers across the United Kingdom are being forced to wait for up to a year, and in some cases even longer, to receive money owed to them by HM Revenue and Customs (HMRC). Refunds that were once processed within weeks are now taking ten months or more, creating severe financial hardship for many individuals and families.
Mounting Backlogs and Personal Hardship
Industry insiders describe the situation as a crisis, with significant backlogs at the tax authority causing widespread delays. The Institute of Chartered Accountants in England and Wales (ICAEW) has raised the alarm, stating that these hold-ups are damaging both businesses and ordinary people. There are concerns that HMRC is prioritising newer claims while older ones remain unresolved.
The human impact is stark. One self-employed builder revealed that he and his wife had to postpone their honeymoon while chasing a £4,550 tax refund claimed in April 2025. He was told by HMRC that he might be waiting until July 2026 for the money. "When people owe it money, they get fined for late payment, but when it owes money, it can take as long as it likes without penalty," he told Guardian Money.
Pensioners and Expatriates Hit Hardest
Elderly expatriates are among those suffering most acutely from the delays. An 83-year-old British woman living in the Netherlands said she had to borrow money while awaiting a £48,000 rebate. She submitted a claim under the double taxation treaty in April 2025 after HMRC continued to tax her pension following her husband's death. She was told it would be resolved by October but has heard nothing since.
"I am 83 and wondering if HMRC thinks my age is to its advantage because, once I die, it will be able to hang on to this money for years," she said. In another case, a British expat in France is still waiting for a £78,000 refund after cashing in her UK pension, despite being told seven months after her claim that it had been approved.
A Stark Double Standard on Deadlines
The delays highlight a glaring imbalance in how HMRC treats deadlines. Taxpayers who pay late face interest charges at the Bank of England base rate plus 4% (currently 7.75%). However, when HMRC is late making a repayment, it pays interest at just 1% below the base rate.
Internal HMRC service updates confirm that some repayment claims for employment and pension tax dating back to January 2025 are still pending. Lindsey Wicks, a senior technical manager at ICAEW, emphasised that self-assessment repayments for requests made in March 2025 are still being processed. "Efforts should be focused on clearing the old backlog, rather than responding to new correspondence," she stated.
The problem also affects workers with multiple incomes. Kabir Das, who works across several NHS departments, was expecting a National Insurance refund in April 2025 but has now been informed it will not be sorted until September 2026.
In response to the crisis, an HMRC spokesperson apologised to those experiencing delays and stated: "We're committed to cutting wait times and are investing £500m in digital services to speed up refunds as well as help customers pay the right tax first time so fewer refunds are necessary."
