Imagine waiting over a year for a refund you desperately need, while facing penalties if you’re even a day late paying taxes. That’s the harsh reality for many taxpayers dealing with HM Revenue and Customs (HMRC) right now. But here’s where it gets even more frustrating: while individuals and businesses are left in financial limbo, HMRC seems to operate by its own rules, with no real consequences for delays that can stretch into years.
An investigation by Guardian Money has uncovered shocking delays in tax and National Insurance Contributions (NICs) refunds, with some cases taking 10 months or more—far beyond the typical few weeks it once took. For instance, self-employed construction worker Simon Hughes* and his wife have had to put their honeymoon on hold, awaiting a £4,550 tax refund claimed last April. When he contacted HMRC, he was told he might have to wait until July 2026. And this is the part most people miss: while taxpayers face hefty fines and interest charges for late payments, HMRC’s compensation for delays is minimal, with interest rates far below what taxpayers are charged.
The Institute of Chartered Accountants in England and Wales (ICAEW) has highlighted the issue of ‘significant backlogs’ that are crippling businesses and individuals. Lindsey Wicks, a senior technical manager at ICAEW, points out that HMRC is prioritizing new claims while older requests are left gathering dust. For example, some self-assessment repayments are still being processed for requests made as far back as March 2025. But here’s the controversial part: is HMRC’s focus on meeting response targets for new claims a fair trade-off when it means ignoring those who’ve been waiting the longest?
Take the case of Jill Eden, an 83-year-old British pensioner living in the Netherlands. She’s been forced to borrow money while waiting for a £48,000 rebate from HMRC. After submitting her claim under the double taxation treaty in April, she was told it would be resolved by October. Months later, she’s still waiting and can’t even get through to HMRC by phone. Her situation raises a troubling question: *Does HMRC exploit the vulnerability of older taxpayers, knowing they might not live long enough to see their refunds?
Jane Leigh, a UK expat in France, faced a similar ordeal. Despite her £78,000 tax refund being approved in September, she’s still waiting. Each time she inquires, she’s told the cheque is in the mail, only to be given vague excuses for its non-arrival. *And this is where it gets even more infuriating: taxpayers are repeatedly told to wait six weeks for updates, with no end in sight.
It’s not just individuals suffering. Employees with multiple jobs, like Kabir Das, who works across NHS departments, are also caught in the backlog. Kabir was expecting his NICs refund last April but was told it wouldn’t be processed until September. University professor Linda Ashcombe, who holds two roles, has been waiting for her £1,000 refund since April. After 15 years of receiving refunds within six weeks, she’s now been told to wait until March 2026. Her exasperation is palpable: *“What the hell is going on?”
HMRC has promised to investigate these cases and has since paid out most of the refunds highlighted by Guardian Money. They’ve also pledged to invest £500 million in digital services to speed up refunds and reduce errors. But the question remains: Is this enough to address a systemic issue that’s causing real financial hardship?
Here’s the bigger question for you: Should HMRC be held to the same standards as taxpayers when it comes to penalties for delays? And if not, why should taxpayers bear the brunt of a system that seems rigged against them? Let us know your thoughts in the comments—this is a conversation that needs to happen.
