HMRC no longer issue cheques to employees due repayments under PAYE

Previously, HMRC automatically issued cheques in cases where employees were due repayments under the pay as you earn (PAYE) scheme. Now, employees must take action to receive the repayment.

After the end of each tax year, HMRC conducts a check to determine whether an employee has paid the correct amount of tax under PAYE. 

If the employee has paid too much tax, for example because they have been put on the wrong tax code, HMRC will write and tell them that they must make a repayment. These letters are usually sent between June and November after the end of the tax year. 

Up until recently, HMRC sent a cheque to the employee if they had not claimed the repayment online after 21 days. Since 31 May 2024 though, cheques have not been issued automatically. Instead, the employee must claim their repayment.  

The tax calculation letter includes instructions on how to claim the repayment and the alternative process for those that cannot claim online. The employee can request a cheque through this process if required.  

Further information

See HMRC's guidance on tax overpayments and underpayments. 

About the Author

Paul Newbold

Partner

After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000. Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.   Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.

To get in touch please e-mail paul.newbold@torgersens.com.