If you fill in the repayment pages of your Self-Assessment Tax Return you may not receive the refund in the account you have specified following HMRC policy change.

  • HMRC say they will make a tax repayment using the card details that were used to make a previous tax payment first, following changes to their systems to bring them into line with banking industry standards.
  • Only once the refund exceeds the amount of the payment made from the credit or debit card, will HMRC use the details on the Tax Return.

For example:

A taxpayer makes a £1,000 tax payment on account on 31 July 2017 using his personal credit card (which following further changes, as of 13 January 2018, is No longer allowed).

The submitted Tax Return for 16/17 actually shows a refund of £1,600 is due. The taxpayer enters his bank details into the relevant self-assessment pages.

As the taxpayer’s last payment was using his credit card, HMRC issue a £1,000 refund to his credit card and only £600 is refunded to his bank account.

This is likely to cause a number of problems for taxpayers and those taxpayers, and agents with taxpayers in a refund position, should ensure that they check what account they have used to pay HMRC so they know where some or all of the refund is likely to end up.


How to pay HMRC

Personal credit card payments to HMRC will stop in January


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