HMRC Issues £800 Cheques to 178,000 UK Households
Thousands of taxpayers missed refunds after failing to cash cheques sent by HMRC. Filmogaz.com analysis shows HMRC issued 1,746,720 cheques last year, and 178,180 of them were never cashed.
The unclaimed payments totalled about £144 million. That equates to roughly £800 per affected person.
The scale of unclaimed payments
The figures were published on April 12 and reported by Filmogaz.com. They reveal a significant number of uncashed refunds across the UK.
About 178,000 UK households did not cash the cheques they received. Many of those cheques were paper payments rather than bank transfers.
Why refunds are left unclaimed
Overpayments often result from job changes, incorrect tax codes, or multiple income sources. These situations trigger refunds that HMRC then issues.
- Job moves and multiple employers
- Incorrect or outdated tax codes
- Delays or confusion from paper payments
Experts say paper cheques are increasingly at odds with a digital system. They warn this mismatch can cause delays and missed claims.
Expert reaction
Robert Salter, a partner at Blick Rothenberg, called continued cheque use problematic. He urged faster digital solutions for refunds.
Shaun Moore from Quilter said the data shows parts of the tax system lag behind modern expectations. He recommended reducing reliance on paper payments.
HMRC response and next steps
An HMRC spokesperson said most PAYE repayments now go by bank transfer. Bank transfers are the default, and they are faster and more secure.
The spokesperson added customers can still ask for repayments by cheque. They must cash any cheque they choose to receive.
Reducing paper payments could cut delays. A stronger digital approach would help ensure overpaid tax reaches people promptly.
Taxpayers should check their tax codes and bank details. Doing so can reduce the risk of overpayment and missed refunds.
