“Where’s My Refund?” Why Your HMRC Tax Repayment Might Be Taking Much Longer Than You Think

You’ve filed your tax return, dotted every “i”, crossed every “t”, and even double-checked the maths. By all accounts, your tax refund should be on its way…right?

Unfortunately, not anymore.

If you're in self-assessment, self-employed or running a small business, you might have noticed that HMRC refunds are taking far longer than they used to. And we’re not just talking a few weeks’ delay, in some cases repayments are dragging out for up to 18 months.

So, what’s really going on?

‍What HMRC used to say

Traditionally, HMRC would advise that:

• Self-Assessment refunds were processed in up to 4 week
• PAYE overpayments could take 5 to 8 weeks
• Some overpayments would simply be rolled forward to cover future tax liabilities, such as Payments on Account
• Occasional security checks could delay things slightly

That all sounds fairly reasonable. But in reality, the current situation is very different, and frustratingly slow.

‍The reality in 2025: Refunds delayed, sometimes for over a year

As of 1stJuly 2025, HMRC have confirmed that they are dealing with significant delays due to an overwhelming backlog of work.

Here’s what you need to know:

• Refund requests are not being reviewed until at least October 2025
• Once reviewed, the payment could take a further 12 weeks to arrive in your account
• Some clients have reported waiting over a year for money they are rightly owed

That’s a long time to be out of pocket, especially in a cost-conscious economy where every penny counts for small businesses and sole traders.

‍What You Can Do

While there's little you can do to speed up the HMRC queue, there are a few things that might help:

Use HMRC’s reply time tool - HMRC have a (somewhat helpful) online tool to estimate when you might hear back from them. This is for all queries (not just repayments) whether you have sent an online form or a letter. You can check that here: www.gov.uk/guidance/check-when-you-can-expect-a-reply-from-hmrc

Make sure your bank details are correct - Refunds can’t be paid if your details are out of date - double-check your  Government Gateway account to avoid unnecessary delays.

Avoid triggering unnecessary reviews -Errors or inconsistencies in your tax return can flag your refund for     further manual checks. Working with a qualified accountant can reduce this risk and help ensure your return sails through smoothly.

Final Thoughts
‍The current delays with HMRC are frustrating, especially when you're owed money and your cash flow is tight. While we can’t speed up HMRC’s internal systems, we can help you navigate the process, ensure your paperwork is watertight, and keep you informed every step of the way.

If you’re still waiting for a refund, or planning ahead for this year’s return, speak to us. We’re here to take the stress off your shoulders and help you focus on running your business.