As a taxpayer, you may have gleefully received a letter from HMRC notifying you about a repayment of your Corporation Tax or Income Tax self-assessment. However, starting from 8 April 2024, this will no longer be the case ...
Historically, a tax rebate is the only letter we're happy to get from HMRC. Now the money will just show up in our bank accounts!
HMRC recently announced that it will stop sending out paper notifications for tax repayments, and instead, taxpayers will simply receive the repayment into their bank account as normal.
"The decision to stop paper notifications is part of HMRC's ongoing efforts to modernise!"
According to HMRC, the letter notifying the repayment often arrives after the repayment has been made, causing confusion and unnecessary contact with taxpayers. This new process aims to eliminate these issues and streamline the notification process.
So, what does this mean for taxpayers? Well, if you are expecting a repayment of Corporation Tax or Income Tax self-assessment, you will now not receive a letter from HMRC notifying you about it. Instead, you can check your online account to see if the repayment has been made. If you are an agent, you can review the repayment on your HMRC online services for agents account.
"It is important to note that this change only applies to notifications for tax repayments!"
Other important letters, such as tax bills or reminders, will still be sent via post. Additionally, for taxpayers who are not able to access their online account, HMRC will continue to provide alternative arrangements.
To ensure a smooth transition, HMRC will continue to send paper notifications for tax repayments until the 8th of April 2024. After this date, all repayments will be made without a paper notification. However, taxpayers can still request a paper notification if they prefer to receive one.
As HMRC will no longer send letters notifying taxpayers of repayments, agents will need to check their clients' online accounts to stay updated on the status of repayments. This may require additional effort and time for agents, but it is a necessary step towards a more efficient process!
I feel that HMRC's decision to stop paper notifications for tax repayments is a positive step towards modernisation and will save it money overall. It will eliminate confusion and reduce unnecessary contact for taxpayers.
However, as with any change at HMRC, it may take time to adjust to the new process.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about HMRC discontinuing tax repayment letters, it may be a great idea to call me on 01908 774320 and let's see how I can help you.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
