UK households are being forced to wait a year or more to receive refunds for overpaid tax and National Insurance Contributions (NICs) from HM Revenue and Customs (HMRC).
Personal Stories Highlight Growing Backlog
Several individuals have come forward to detail the severe financial strain caused by the extensive delays. A self-employed construction worker revealed he and his wife have had to postpone their honeymoon because he is still waiting for a £4,550 rebate he claimed in April 2025. He told the Guardian that HMRC informed him he might not receive the money until July 2026.
Another claimant, a pensioner living in the Netherlands, said HMRC has continued to tax her pension at £2,100 a month since her husband died two years ago. She submitted a claim under the double taxation treaty in April 2025, was promised a resolution by October, but has heard nothing since and finds it impossible to reach HMRC by phone.
A university professor, who for 15 years received refunds within six weeks, was first told his claim would be processed by November 2025. By December, HMRC's online tracker had pushed the estimated date to March 2026, with call centre agents unable to explain the holdup.
HMRC's Response and Investment Pledge
In a statement addressing the complaints, HMRC apologised to those experiencing delays. A spokesperson said: "We receive millions of tax refund claims every year, and the vast majority are paid promptly, but we apologise to those experiencing a delay."
The tax authority stated it is committed to reducing wait times and is investing £500 million in digital services. This investment aims to speed up the processing of refunds and also help customers pay the correct tax upfront, thereby reducing the need for future rebates.
Mounting Pressure for Faster Resolution
The growing backlog has sparked criticism over a perceived double standard, where individuals face penalties for late tax payments, but HMRC itself operates without similar financial penalties for delayed refunds. The situation places significant pressure on household finances, particularly for the self-employed and those on fixed incomes who rely on timely rebates.
As the wait times extend, affected taxpayers are calling for greater transparency and faster action from the government's tax agency to resolve the mounting issue.
