On 21 October 2021 we outlined the action HMRC is taking to defend the tax system from fraudsters who attempt to register numerous people for self-assessment, then submit false repayment claims.
HMRC reacted to this threat by sending taxpayers self-assessment repayment verification letters, as we explained on 25 March 2021. This intervention has slowed up the processing of genuine tax repayments due to taxpayers.
HMRC is apparently now getting on top of the extra administration introduced into the system due to these repayment verification letters. It has increased the resources devoted to clearing the back-log of repayment claims and expects the system to be back to normal by the end of November 2021.
From that point all repayment claims should be actioned by HMRC within 30 calendar days of receipt. This may not mean the repayment is issued in that period, as those claims identified as a risk will be suspended and subject to further checks by compliance experts.
Written by the Tax Advice Network