A recent ICAEW news item explained that employees must take action to claim P800 PAYE repayments, and that the option to wait 21 days for a cheque to be issued automatically has been removed. 

ICAEW has now learnt that these changes do not yet apply to all P800 repayments. Some taxpayers will continue to receive old style P800s with a message to say that a cheque will be issued if the repayment is not claimed within 21 days. This includes repayments where multiple tax years or claims by agents are involved.  

However, most taxpayers will receive a new style P800 with instructions that the new process must be followed and the repayment should be claimed online. 

New online process 

HMRC has developed a new process whereby the repayment can be claimed by going online and either: 

• requesting a cheque to be sent by post; or 
• arranging a transfer into the taxpayer’s bank account.  

There is no requirement to set up government gateway credentials for this service. All that is required is the P800 reference number and the taxpayer’s national insurance number. There is no opportunity to nominate the repayment to a third party. 

Reassuringly a cheque will only be sent to the taxpayer’s address on HMRC’s records. If that address is not correct, the taxpayer will need to change the address by phoning HMRC, or by using the online change of address service, which is behind sign in credentials. 

If the bank account transfer option is selected, the taxpayer will need to have their banking app installed on the device they are using and will be transferred to sign in to their bank account as part of the process. This may well cause confusion and concern. 

Many taxpayers will prefer to claim the repayment using the HMRC app or online account. Although that means that sign in credentials are required, it allows the taxpayer to access all the other services in these accounts. 

ICAEW has asked HMRC why an online process outside the HMRC app and online account has been developed. We have been reassured from a security standpoint, but it would seem to be a strange departure from promoting the app and online account.