HMRC Tax Refund Cheque – What You Need to Know - Pro

HMRC Tax Refund Cheque – What You Need to Know

February 14, 2025

Receiving a tax refund from HM Revenue & Customs (HMRC) can be a pleasant surprise, but many people wonder how they will get their money back. While HMRC often refunds overpaid tax directly to your bank account, in some cases, they issue a tax refund cheque, also known as a payable order.

If you’ve received or are expecting a tax refund cheque from HMRC, here’s everything you need to know.

Why Would HMRC Issue a Tax Refund?

You may be eligible for a tax refund if you have:

Overpaid income tax through PAYE (Pay As You Earn)
Paid too much tax on pension contributions or other income
Overpaid tax through Self-Assessment
Claimed tax reliefs or allowances that weren’t applied earlier
Stopped working or had a change in employment status

How Does HMRC Issue Tax Refunds?

When you are due a refund, HMRC usually tries to process it via bank transfer (if they have your details). However, if they do not have your bank information or if the refund is processed automatically, they will send you a tax refund cheque by post.

Common Ways HMRC Issues Refunds:

Bank transfer (BACS) – If HMRC has your bank details, they will issue the refund directly.
Cheque (Payable Order) – If bank details are unavailable or the refund is processed automatically, HMRC will send a cheque by post.
Credit towards other tax liabilities – If you owe HMRC money (e.g., unpaid Self-Assessment tax), they may offset your refund against your outstanding balance.

Additional Notes:

HMRC no longer refunds via debit/credit cards.
Refunds are not issued to third-party bank accounts (except in rare cases like legal representatives).

How to Cash or Deposit an HMRC Cheque?

If you receive an HMRC tax refund cheque, you can:

1. Deposit it into your bank account – Most UK banks accept cheque deposits via mobile banking, ATMs, or in-branch services.

2. Cash it at a post office (if your bank allows it) – Some UK banks, such as Barclays, NatWest, and HSBC, allow cheque deposits at the Post Office, but they do not provide instant cash for HMRC cheques. You may need to check with your bank first.

3. Endorsing it to someone else is usually not allowed – HMRC cheques are not transferable, meaning they can only be deposited into the named recipient’s account.

Key Notes:

HMRC cheques are typically valid for 6 months from the issue date.
If you lose your cheque, you can request a replacement from HMRC.

What is the timeframe for receiving a refund?

Once HMRC confirms your refund, the timeline varies:

Online refunds (bank transfer): 5–10 working days
Cheque refunds: Up to 5 weeks (including postal delays)

If you haven’t received your cheque after five weeks, contact HMRC to check your refund status.

Beware of Tax Refund Scams!

HMRC never asks for personal or banking details via text, email, or phone.
If you receive a suspicious message about a tax refund, report it to HMRC’s phishing team.

How to Check If You’re Owed a Tax Refund?

You can check your tax refund status by:

Logging into your Personal Tax Account on GOV.UK
Checking your PAYE tax calculations (P800 form)
Contacting HMRC’s Self-Assessment helpline

Final Thoughts

HMRC tax refunds can be issued via cheque if your bank details aren’t on file. While waiting for your refund, ensure your details are up to date and watch out for scams. If you believe you’re owed a tax refund, it’s always best to check directly with HMRC.

Need help understanding your tax situation? Whether you’re a freelancer, small business owner, or landlord, making sure you claim the right tax reliefs can save you money. Let our experts guide you through tax refunds, deductions, and compliance.