HMRC Repayment Issued But Not in Bank – Here’s Why

Introduction

HMRC Payment issued but not in bank? – Here’s why. You’re not alone. Every year, thousands of UK taxpayers experience similar confusion and delays. This article will walk you through the possible reasons behind this delay, how to check your HMRC repayment status, and what to do next.

What Exactly Is an HMRC Repayment – and Why Might It Not Appear in Your Bank?

HMRC issues tax repayments when you’ve paid more tax than necessary—typically through Pay As You Earn (PAYE), Self Assessment, or other tax adjustments (e.g. marriage allowance transfers or job expenses). Repayments may be triggered automatically or after submitting a tax return.

Repayment methods:

• BACS transfer – This is the most common method, where the refund is sent directly to your nominated bank account.

• Cheque by post – This is usually used when no bank details are on file or if HMRC cannot process electronically.

Expected timeframes:

• BACS: 3 to 6 working days

• Cheque: 7 to 15 working days

• Delays likely: In peak periods (April to July), bank holidays, or if further checks are needed.

How Can I Check My HMRC Repayment Status?

Can I check my HMRC refund online?

Yes. Use your Personal Tax Account:

• Log in at “www.gov.uk/personal-tax-account”
• Navigate to “Self Assessment” or “PAYE Services”
• Check “View your tax return details” and “Check progress of repayment”

Tip: You can also check if a repayment has been issued and whether it’s marked as “pending,” “sent,” or “repaid by cheque.”

Also do you want to know about HMRC MTD Income Tax Changes 2026? – Here is the full guide.

Should I wait before contacting HMRC?

Yes. HMRC advises waiting before contacting them, as most delays resolve themselves.

Here’s when to wait and why:

• • Normal BACS delays: Wait at least 10 working days after the “issue date” before escalating.

  • Cheque payments: Allow up to 15 working days for postal delivery.

  • Tax season peak (April–July): Delays are common due to high volumes, especially after the Self Assessment deadline.

  • Security checks: Even if payment is authorised, extra verifications may cause a pause in disbursement.

What Are Common Reasons Your HMRC Repayment Is Delayed?

Is It Due to Bank Details Issues?

This is one of the most frequent causes of failed payments.

Things to check:

• Ensure your sort code and account number are correct in your Personal Tax Account.

• Avoid using closed or inactive bank accounts.

• Make sure the account accepts BACS payments (some prepaid or business accounts may not).

• If you’ve changed banks recently, update the new details on file.

Could HMRC Be Verifying My Identity or Details?

Yes. HMRC often puts repayments on hold if anything suspicious is flagged.

Verification triggers may include:

• Large refund amounts

• Mismatched personal data (e.g. address or NI number)

• Suspicious or multiple refund claims in one tax year

• First-time filers or amended tax returns

What happens during verification:

• HMRC may contact you for ID or address documents.

• Verification can take 4 to 6 weeks—or longer if documents are missing or unclear.

Is Your Refund Being Sent by Post Rather Than Bank?

If you didn’t provide bank details during your tax return submission, HMRC defaults to cheque.

Key facts:

• The location listed in HMRC’s records is where checks are mailed.

• Delays are common due to postal strikes or address mismatches.

• Cheques can be lost or misdelivered—contact HMRC if you suspect this.

Tip: If you prefer bank payments in the future, always input your bank details when filing a return.

Has a Weekend or Bank Holiday Affected Timing?

Make aware of the UK Bank holidays. Timing can be pushed back by Bank Holidays 2026.

What this means:

• Payments are not processed on weekends or UK public holidays.

• If your payment is due on or just before a holiday, it may be delayed until the next business day.

• Refunds issued late in the week may only appear the following week.

What to Do If Your HMRC Refund Hasn’t Arrived Yet

Here are your next steps if you’ve waited but still see no sign of your repayment:

1. Verify bank details: Log into your Personal Tax Account and check for errors.

2. Look at payment status: Has the payment been issued, or is it still pending?

3. Check your address: If awaiting a cheque, make sure HMRC has your current postal address.

4. Use secure messaging: You can raise a query within your tax account without calling.

5. Call HMRC: Use the Self Assessment helpline – 0300 200 3310 (or 0300 200 3300 for PAYE queries).

6. Prepare documentation: Have your UTR number, NI number, and details of the return ready when contacting.

When Should You Contact HMRC Directly?

You need to contact HMRC immediately by phone or message if:

• It’s been over 14 working days since the repayment was marked as “issued.”

• You believe your bank details are incorrect or outdated.

• You’ve received no communication—neither confirmation email nor cheque.

• Your cheque hasn’t arrived within 3 weeks of being issued.

• Your refund status shows “sent” but it’s not in your account.

• You’ve received a security check letter, but haven’t heard back in 6+ weeks.

How Long Should HMRC Refunds Take in Typical UK Cases?

Repayment Type	HMRC Processing Time	Bank Clearing Time
PAYE tax refund	2–3 working days	1–2 working days
Self-Assessment refund	5–6 working days	2–3 working days
Cheque refund	Up to 10 working days	Postal delivery time

 

Will HMRC automatically refund overpaid tax? 

• ✅ Yes, HMRC can automatically refund overpaid tax, especially via PAYE if your tax code was wrong or you changed jobs.

• 🧾 Self Assessment refunds are processed automatically if your return shows overpayment and you’ve entered correct bank details.

• ❌ You may need to claim manually if HMRC sends you a P800 or if your bank/contact details are outdated.

• 🔍 Check your refund status and update details via you “personal tax account”

How Can You Avoid Future HMRC Refund Delays?

Even while you have no control over certain delays, you may take a few proactive measures to assist guarantee future repayments go more smoothly and quickly.

How often should I update my bank details?

Update your details if:

• You change banks or close an account

• You move from a joint to a personal account (or vice versa)

• Your old account no longer accepts BACS payments

Best practice:
Review your bank details annually, ideally before submitting your Self Assessment or PAYE details—especially if you’re due a refund.

Should I sign up for HMRC alerts and notifications?

Yes—opt into HMRC alerts through your Personal Tax Account. These alerts might provide you with information regarding:

• Refund status updates

• Return processing progress

• Action needed for security verification

• Confirmations of issued payments

How to activate notifications:

• • Log into your “personal tax account”

  • Go to “Manage your account” > “Contact preferences”

  • Enable email or text alerts for updates

Maintain Current Records and Information

Avoid mismatches or verification delays by:

• Keeping your name, address, and phone number up to date

• Filing accurate and on-time tax returns

• Including supporting documents or explanations if you’ve made unusual claims

Why HMRC PAYE and CIS Refunds May Take Months in 2025

In 2025, PAYE and Construction Industry Scheme (CIS) refund processing has faced significant disruption due to internal challenges. how much can you earn before paying tax per month?.

Key reasons for long delays:

1. Staff shortages and industrial action

   • HMRC has experienced reduced processing capacity due to staffing gaps and ongoing civil service strikes.

   • Priority has shifted to essential operations, causing refund queues to build up—especially for PAYE and CIS claims.

2. Manual verification backlog

   • CIS refunds often involve complex verification of contractor deductions.

   • PAYE overpayments from multiple employers or job changes can also trigger manual review.

3. Fraud prevention checks

   • HMRC has tightened identity checks and document requests due to rising refund fraud.

   • These checks may delay large repayments or first-time claims.

Which HMRC Repayment Method Is Best: BACS, Cheque—or App Authorization?

Method	Speed	Risk/Delay Factors
BACS	Fastest (2–6 days)	Needs correct bank details
Cheque	Slowest (up to 15d)	Subject to postal issues
App Approval	Medium (manual step)	Requires banking app setup

Tip: Choose BACS with current account verification to ensure fastest refund.

What Does ‘Bank Repayment Pending’ Mean—and When Should You Escalate?

When your HMRC Personal Tax Account or Self Assessment portal shows “Bank repayment pending,” it usually means the refund has been authorised internally, but not yet released for payment. It’s essentially queued but held for further checks.

• It means HMRC has scheduled the payment but it’s not yet released
• This can happen if flagged for additional review

Escalate if:

• Status remains unchanged for 2+ weeks
• You have received no contact explaining the delay

How Long Does HMRC Repayment Take for Self Assessment?

HMRC processing times vary depending on your situation and the time of year.

Why Is My Repayment Still Pending at HMRC?

There are multiple reasons why your repayment might still be sitting in “pending” status. Most are routine, but some may require intervention.

Possible Reasons for Delayed Processing:

1. Identity Verification

   • HMRC may be confirming your identity, especially for new filers, large refunds, or amended returns.

   • You may be asked to submit documents online or respond to a verification letter.

2. Mismatch With Employer Data (PAYE/CIS)

   • HMRC compares your self-assessment to the PAYE data that your contractor or employer has provided.

   • If there’s a delay or discrepancy, the repayment is held for reconciliation.

3. Outstanding Balances or Errors

   • If you owe any previous tax or underpaid an earlier year, the refund may be offset.

   • Errors in your return (duplicate UTR, mistyped income, missing P60s) can trigger delays.

4. Technical or Internal System Issues

   • HMRC occasionally experiences backlogs or system errors, especially in peak filing season or after software updates.

 

What Should You Do If Your Repayment Is Still Pending?

Here’s a checklist of actions if your repayment appears to be stuck:

✅ Wait the official timeframe – At least 10 working days from the refund issue date
✅ Check for notifications – Log into your account and look for secure messages or request prompts
✅ Review your tax return – Ensure no errors or missing info
✅ Double-check your bank details – Incorrect information can delay BACS transfers
✅ Use secure messaging – It’s safer and often quicker than phone lines
✅ Call HMRC if delayed more than 2 weeks – Especially if status is unchanged and no correspondence received

Conclusion

An HMRC repayment not appearing in your bank can feel frustrating, but delays are often due to simple, resolvable issues. If the delay is more than 10 to 14 working days, check your online account, confirm your information, and get in touch with HMRC. Patience and persistence usually resolve the issue.

FAQs

Why does HMRC say repayment is issued but money hasn’t hit my account?

Likely due to bank processing, incorrect details, or HMRC’s internal checks.

How many days after HMRC issue date should I wait?

Wait at least 10 working days before contacting HMRC.

What to do if I gave incorrect bank details?

Update them via your Personal Tax Account and inform HMRC immediately.

Can HMRC re-issue a payment? How long?

Yes. Re-issue can take 10–20 working days depending on verification needs.

Are there weekend or bank holiday delays?

Yes. Payments are not processed on weekends or public holidays in the UK.