Recent Blog
Arrange a FREE Consultation Call and Let’s Discuss Your Goals!
If you’ve just submitted your Self Assessment tax return, then you must be wondering about how long does a tax refund take? If this is the case, you’re not alone. Every year, thousands of people across the UK ask the same thing after realising that they’ve overpaid tax. The miserable part is if you’re self-employed or working through PAYE. In this situation, the waiting period can feel endless. But the truth is that the timing depends on a few important factors.
Regardless of that, if one has an expert, such as one from MMBA Accountants, by one’s side, then the thins become quite easy to understand.
Table of Contents
When You Can Expect Your Tax Refund
In most case, if the person has paid too much tax, in this case HMRC aims to process your tax refund within about five working days. Still, they first review your Self Assessment. This only applies if you’ve submitted your return online and provided them with all the information they need.
If you sent a paper tax return, it usually takes much longer. Sometimes it even takes up to eight weeks. After the approval of your refund, they directly send the money to your bank account via bank transfer. However, some people still prefer a payable order, which is basically a cheque. But that usually takes even more time.
It’s also worth noting that around the Self Assessment deadline, which falls on 31 January each year, HMRC’s workload increases significantly. In such busy periods, it usually takes several extra weeks for your refund to arrive.
Reasons for Tax Refunds Delay
Sometimes, even when submit everything correctly, and your tax refund doesn’t show up according to expectations; then there are a few common reasons for this.
Missing Information
One of the major reasons is missing information. If you provide incorrect or incomplete bank details, assessment record, or unique taxpayer reference (UTR number) then they hold back your refund until you fix the errors.
Mistakes in the Tax Return
Another common issue is mistakes in your tax return. Even small errors, such you wrong date or amount, can lead to delays. In some cases, HM Revenue may manually review your assessment tax return if they need to double-check your figures or claims for tax relief.
Issue of Timing
Finally, the last factor is timing. It plays a big role. If you submit your Self Assessment during peak times, such as January, then things take longer to execute. The reason is that you’ll be competing with millions of other taxpayers. Naturally, that slows the process down.
How to Speed Things Up
If you’re waiting for your refund and want to speed things along, there are a few simple steps you can take.
Submit Early
First, always submit early. We recommend you to not wait until the last few days before the assessment deadline. If you file your tax return in November or December, this means that HMRC can review it before the busy times hit.
Correct Account Details
Second, make sure that your bank account information and HMRC account details are correct. A small typo can cause unnecessary delays. Additionally, it also helps to log in to your HMRC online account regularly to check your refund status. Moreover, you can also make sure the approval status of your return.
If it’s been more than three weeks since you received confirmation but no money has arrived, you can contact HMRC directly. They can review your assessment record and confirm if your refund has been issued.
How HMRC Sends Your Refund
Once your tax refund is ready, HMRC releases the payment in a few different ways. The most common method is a bank transfer. The pro of this method is that it sends the money straight to your bank account. This is usually the fastest option.
If you didn’t provide your bank details, you might receive a payable order. Payable order is a paper cheque. These take longer to arrive and clear. In some cases, if you paid your tax using a debit card, the refund might go straight back to that same card.
Sometimes, one can make direct debit adjustments instead of sending cash. That means if you owe tax for the next year, HMRC may adjust the next payment rather than refunding the money to you.
Paperwork and Accuracy Matter
Many people don’t realise that the biggest factor that affects how long a refund takes is accuracy. If your Self Assessment includes missing details, unverified expenses, or unclear costs, then your case might be flagged for extra checks.
That’s why it’s important to double-check your documents. One also has correctly list all the payments and deducted, and keep your Self Assessment record complete. Even one missing detail can cause delays and make your refund take weeks longer than expected.
It’s also helpful to keep copies of everything you submit. The copies usually include receipts, statements, and paperwork. If HMRC asks for missing information, then you’ll have everything ready to send right away.
Checking the Status of Your Refund
You can always stay updated by logging into your HMRC online account. Once your return has been processed, then you can see your refund status. If it says “Pending,” that means HMRC is still reviewing your assessment. If they label it as “Refund issued,” it means that the money is already on its way to your bank account.
However, one must keep in mind that HMRC doesn’t always send automatic notifications. It’s the responsibility of a person to check your account regularly. Lastly, one need to make sure that your refund hasn’t been delayed due to any unforeseen situation, such as missing details or mistakes.
What If You Don’t Get a Refund?
Sometimes, unusual also happens after your Self Assessment. You may find out you owe tax instead of being owed a refund. The primary of this happening is that not enough tax was deducted from your income during the year.
In that case, you’ll need to make your payments before the assessment deadline to avoid interest or penalties. On the other hand, if you’ve overpaid, HMRC will automatically issue your rebate once everything has been approved by them.
Conclusion
So, to answer the question how long does a tax refund take? One has to consider many factor. It usually takes five working days for most people in the UK. But that only happens if they file it online and everything is accurate. But during busy periods, it can take up to eight weeks or even more.
The key, however, is to file early, double-check your details, and keeping your online account up to date. Don’t overlook the fact that your bank details are correct and that your assessment record is complete. For more information on important tax year dates and filing deadlines, make sure you’re familiar with the key timelines for submitting your return.
We understand that it frustrates one to wait longer for a refund. But if you provide all the details and avoid mistakes, then you’ll get your money without unnecessary delays. And if something seems off, then don’t hesitate to contact HMRC. It’s always better to stay updated and know exactly where your refund stands.
Frequently Asked Questions
What is an assessment tax return and why is it important for a tax rebate?
An assessment tax return is the form that you submit to HMRC to report your income and expenses. It is important because it helps determine if you’ve overpaid tax and are eligible for a tax rebate.
How do I know if I’m eligible for a tax rebate?
To know if you are eligible for a tax rebate you may consider if you’ve paid more tax than you owe. For example, through PAYE or self-employment. HMRC reviews your return and processes your refund once they approve your assessment tax return.
What are the most common questions about self assessment tax returns?
The most common questions about self assessment tax returns include how to file a Self Assessment tax return, when to submit it, and how long a tax rebate takes after filing. HMRC’s service aims to issue refunds within a few working days if all details are correct.
What should I do if my bank details are wrong on my tax rebate claim?
If your bank details are incorrect, you should contact HMRC immediately to update them. Incorrect information is one of the common reasons for delays in receiving your tax rebate.
What are common reasons self employed people get tax rebates?
For the self employed, common reasons for a tax rebate include claiming tax relief on expenses or paying too much tax in advance. Always check your assessment tax return carefully to make sure all information is accurate.
Facebook
Twitter
LinkedIn