HMRC made us wait a year for £150,000 tax rebate

HM Revenue & Customs has paid a £153,500 tax rebate after a year-long delay, which the department blamed on a 'handling error' [1]. The case highlights a system where taxpayers face fines for late payments while HMRC allows itself up to a year to process refunds [1]. The rebate was owed to an 86-year-old man who overpaid inheritance tax on his late wife's estate [1]. His son, CJ, stated the solicitor's initial estimate "was wildly out" [1]. After the case was raised with HMRC, the money was paid with interest in a single afternoon [1]. HMRC, the UK government department responsible for tax collection formed in 2005 [2], insists most cases are resolved within 15 working days [1]. Another taxpayer, CK, faced a 13-month wait for a £5,094 refund after HMRC admitted registering her for the wrong, more expensive class of National Insurance contributions [1]. She was told to expect her refund by November 2026, but payment was approved only after media intervention [1]. Conversely, NS in Poland has waited over a year to pay voluntary contributions, being told a small team was still processing cases from 14 months prior [1]. HMRC states the "vast majority" of contributions are processed in five working days but blames delays on application surges [1]. The department has recruited hundreds of extra staff following government instructions to improve response times [1]. Tax commentator Dan Neidle, a former head of tax at Clifford Chance, has highlighted systemic tax policy issues through his non-profit work [4]. The resolution for the 86-year-old came swiftly after contact. "I've never heard my father so jubilant," CJ said [1].