HM Revenue and Customs checks their records for all PAYE employees at the end of each tax year to ensure their employer has deducted the correct amount of tax.
If HM Revenue and Customs discovers that an employee has overpaid tax, they inform the individual through a letter that they are due a repayment. They typically send these letters between June and November following the tax year’s end. In the past, if an employee did not claim their repayment online within 21 days, HMRC would issue a cheque and post it to the individual’s address.
However, starting from May 2024, HMRC will no longer automatically issue PAYE cheques. Instead, employees must actively claim their repayment. The tax calculation letter from HMRC provides instructions on how to claim through their digital services, as well as an alternative procedure for those unable to claim online.
The HMRC app, a part of their digital services, is highly functional and available on both iOS and Android.
For more information or advice on PAYE repayments, please get in touch with our team.
