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178,000 taxpayers missed out on rebates sent by cheque

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Newsletter issue – May 2026

178,000 people didn't receive tax rebates last year because they never cashed the cheques HMRC sent them. These uncashed cheques were worth £144m in total, averaging about £800 per taxpayer.

HMRC still issues cheques when people don't respond to rebate letters within 21 days - a legacy process that hasn't fully adapted to the digital era. 1.74 million cheques were issued last year; although this is fewer than in the past, a significant number still go unclaimed.

HMRC is transitioning to a new system where cheques are only sent if someone specifically requests one. Around 20% of taxpayers are still on the old system, but HMRC aims to complete the switch by April next year.

Overpayments happen for common reasons such as job changes, incorrect tax codes or having multiple sources of income.

If you have an uncashed cheque from HMRC that was issued over six months ago, you will no longer be able to cash it. HMRC says it can be replaced on request.

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