How Long Does A Tax Refund Take To Clear In The Bank?
By
HuutiMoney
If you are expecting a tax refund in the UK, you are probably wondering how long it will take for your refund to clear in the bank. This blog post will provide an overview of the process of bank clearing when it comes to a tax refund in the UK, so you can have a better understanding of when you can expect your money to arrive.
How Long Does A Tax Refund Take To Clear In The Bank?
How long it takes for a tax refund to clear in the bank depends on:
- the type of tax return that you have filed
- if there is incorrect or incomplete information in your form
- the method you use to receive your tax refund
One of the most important factors that determine how long it can take for a tax refund to be cleared in a UK bank is the type of tax return you filed. If you’ve submitted a P800 form as part of your PAYE tax return, it’s likely to take up to 10 working days to receive your refund.
However, if you’ve submitted a self-assessment tax return, it could take anywhere from 28 to 40 working days to get your refund.
Another factor that can affect how long it takes for a tax refund to be cleared in a UK bank is how quickly HMRC processes your return. If there are any errors or discrepancies on your form, or if HMRC needs to investigate further, it can delay the refund process.
If there are any security checks or verifications that the HMRC deem necessary while processing your request for a tax return, it can add a few days to the process of receiving your tax refund.
Finally, the method you use to receive your tax refund can also affect how long it takes for the money to be cleared in your bank account. Refunds transferred electronically will generally arrive in your bank account faster than refunds sent by post.
Online payments through a Personal Tax Account will be transferred in a matter of days while payments through cheques can take at least 2 weeks.
To avoid delays, make sure you submit your tax return as early as possible, double check all information is accurate and opt for an electronic transfer if possible.
There are a few things you can do to speed up the process, such as e-filing your return and requesting direct deposit into your account.
Can I Get My Tax Refund Earlier If I Have Filed My Tax Returns Electronically?
Yes, you can get your tax refund earlier if you’ve filed your tax return electronically. The HMRC has introduced a ‘P800 Service’ that allows you to get your refund earlier if you have filed your tax returns electronically.
The P800 service is available to those who have registered for the PAYE (Pay As You Earn) or Self Assessment system, and generally takes 5-10 working days for the refund to be processed and deposited into your account. This is much quicker than the traditional route of waiting weeks or even months for your refund to arrive.
On the other hand, if you file your return by paper, it can take up to six weeks for the refund to be processed and deposited into your account.
Do You Need To Visit Your Bank To Claim Your Tax Refund?
No, you don’t need to visit your bank to claim your tax refund if you use a Personal Tax Account. The online tax refund system introduced by the HMRC allows individuals with a Personal Tax Account to receive overpaid amounts of taxes in their bank account directly. This abolishes the need for them to visit the bank or claim the amount with a cheque.
You can simply sign in to or sign up for a Personal Tax Account using your Government Gateway user ID and password. If you have not used your Government Gateway user ID and password, you will need to provide confirmation of your identity with a UK passport or driving license, your payslip or self-assessment details; along with your National Insurance number.
If you require any assistance, you can call the HMRC helpline at 0300 200 3300 if you are in the UK and +44 135 535 9022 if you are outside the UK. Calls are received between Monday and Friday from 8 am to 6 pm.
Conclusion:
The number of days it takes for you the bank to clear your tax refund depends on your method of filing a tax return as well as the mode of payment you have opted to receive payments. However, generally speaking, having a Personal Tax Account tends to speed up the process and you can receive the amount in a matter of days.