HMRC Security Checks On Repayments
- Adil Akhtar
- Jul 31
- 15 min read
The Audio Summary of the Key Points of the Article:
Unpacking HMRC Security Checks on Repayments
What Are HMRC Security Checks, and Why Do They Happen?
Let’s get straight to it: HMRC security checks are routine but sometimes frustrating steps the UK’s tax authority, HM Revenue & Customs (HMRC), takes to verify self-assessment tax refund claims before releasing funds. These checks exist to prevent fraudulent claims, ensuring that public money only goes to legitimate taxpayers. Think of them as HMRC’s way of double-checking that the person claiming a refund is who they say they are and that the numbers add up. They’re not about doubting your honesty but about safeguarding the system against fraudsters who might try to siphon off funds using fake identities or dodgy tax returns.
Now, these checks aren’t new, but they’ve become more rigorous since 2021, especially after HMRC noticed an uptick in fraudulent activity in online self-assessment systems. With everything moving digital, it’s easier for fraudsters to try their luck, so HMRC has beefed up its processes to catch them. The downside? Genuine taxpayers like you can get caught in the net, facing delays that can stretch from a few weeks to several months.
How Do Security Checks Fit into the Refund Process?
None of us loves wading through tax jargon, but understanding where security checks fit in the self-assessment refund process can help you make sense of delays. When you file a self-assessment tax return (due by 31 January for online filings for the previous tax year), HMRC processes it to determine if you’ve overpaid tax. If you have, you can claim a refund, either through your tax return or by requesting it via your HMRC online account. Once processed, your refund might show as “bank repayment pending” in your account, meaning HMRC has acknowledged it but hasn’t sent the funds yet.
Here’s where security checks come in: HMRC’s automated systems, like the Connect software, flag certain returns for further scrutiny based on risk criteria. If your return is flagged, it’s sent to a Repayment Security Authoriser (RSA) for manual review. This could involve checking your identity, verifying your bank details, or cross-referencing your income streams. For example, in 2022/23, HMRC investigated around 300,000 tax returns out of 12 million filed, recovering £31 billion in additional tax revenue through compliance checks. That’s roughly 2.5% of returns facing scrutiny, so while it’s not common, it’s not rare either.
What Triggers a Security Check?
So, what makes HMRC’s system raise an eyebrow? Several factors can prompt a security check, and knowing them can help you anticipate potential delays. High-value refunds, especially those tied to the Construction Industry Scheme (CIS), are prime candidates because they often involve large sums. Errors or inconsistencies in your tax return—like a decimal point in the wrong place or a big jump in income from one year to the next—can also trigger a review. Even something as simple as updating your bank details recently can raise a red flag, as HMRC wants to ensure the money isn’t going to a fraudster’s account.
Here’s a quick look at common triggers:
Trigger | Why It Raises Flags | Impact on Refund |
High-value refund | Large sums (e.g., CIS refunds) attract scrutiny due to fraud risk. | Delays of 4-12 weeks; may require identity verification. |
Recent bank detail changes | Potential fraud if details don’t match HMRC records. | Up to 14-day delay for payment clearance. |
Errors in tax return | Inconsistencies or incomplete entries prompt manual checks. | Delays until errors are resolved; may need additional documents. |
Significant income change | Unexplained jumps or drops in income raise suspicion. | Review of income sources, potentially 6-8 weeks delay. |
Voluntary tax returns | Returns filed without an HMRC notice increase risk. | 75% higher chance of delay due to manual review. |
Be careful! Submitting a voluntary return—filing without an official HMRC notice to do so—can increase your chances of a delay by 75% since HMRC tightened its processes in September 2021. Always request a notice to file first to stay in the automated system.
A Real-Life Example: Sarah’s Delayed Refund
Now, consider this: Sarah, a self-employed graphic designer from Leeds, filed her 2023/24 tax return in April 2024, expecting a £2,500 refund due to overpaid tax on a freelance project. She updated her bank details in March 2024, which triggered a security check. HMRC sent her a letter requesting a copy of her passport and a recent bank statement to verify her identity. Frustrated, Sarah waited six weeks before the refund hit her account in June 2024. Her case highlights how even small changes, like updating bank details, can lead to delays if not handled proactively.
Why Do These Checks Matter to You?
Let’s face it—waiting for a refund feels like waiting for a bus in the rain. You’ve paid your taxes, done the paperwork, and now you’re stuck wondering where your money is. Security checks matter because they protect the tax system, but they can also disrupt your cash flow, especially if you’re a small business owner relying on that refund to cover expenses. In 2024/25, with the personal allowance frozen at £12,570 and income tax rates unchanged (20% basic, 40% higher, 45% additional), overpaying tax is common, especially for self-employed individuals or those with multiple income streams [https://www.gov.uk/check-income-tax-current-year]. Understanding why checks happen can help you plan better and avoid surprises.
Navigating Delays and Taking Action
How Long Do Security Checks Really Take?
Now, let’s talk about the question on everyone’s mind: how long will you be twiddling your thumbs waiting for that refund? HMRC’s standard processing time for self-assessment refunds is about 4-6 weeks, but security checks can stretch this significantly. For straightforward cases—like a simple identity verification—expect an extra 2-4 weeks. However, if your refund involves complex issues, such as Construction Industry Scheme (CIS) claims or overpayment relief, delays can balloon to 12 weeks or more. In 2023/24, HMRC reported that 15% of flagged refunds took over 10 weeks to process due to enhanced fraud checks introduced post-COVID. The key is to know what’s slowing things down and how to nudge the process along.
Delays often depend on the type of check. For instance, bank detail verification might hold up your payment for 14 days while HMRC ensures the account is legit. More thorough compliance checks, like those for high-value CIS refunds, can involve multiple departments, dragging things out. If you’re self-employed and claimed a refund for overpaid tax in the 2024/25 tax year, with the basic rate at 20% and personal allowance still at £12,570 [https://www.gov.uk/check-income-tax-current-year], a delay could mean waiting until late spring to see your cash.
What Can You Do When HMRC Requests Information?
Be careful! Ignoring or delaying your response to an HMRC request is like leaving your washing out in a storm—it’ll only make things worse. If HMRC flags your refund, they’ll usually contact you via letter or through your HMRC online account, asking for documents like a passport, driving licence, or bank statements to verify your identity. They might also request proof of income, such as P60s, invoices, or CIS payment statements, especially if your return shows unusual patterns.
Here’s what to do:
● Respond promptly: Aim to send requested documents within 7-10 days to avoid further delays.
● Use secure methods: Upload documents via your HMRC online account or send them by recorded delivery to ensure they’re received.
● Keep records: Note down reference numbers and dates of communication in case you need to follow up.
● Double-check your submission: Ensure documents are clear, legible, and match HMRC’s requirements (e.g., a recent bank statement, not one from two years ago).
So, the question is: what if you don’t have the exact documents they’re asking for? Don’t panic. Contact HMRC to explain and offer alternatives, like a utility bill for address verification or a payslip for income proof. The key is to stay proactive and keep the lines of communication open.
Step-by-Step Guide: How to Chase a Delayed Refund
None of us wants to spend hours on hold, but sometimes you’ve got to chase HMRC to get your money moving. Here’s a step-by-step guide to nudge your refund along without losing your cool:
Check your HMRC account: Log into your HMRC online account to see if your refund is marked as “pending” or if there’s a request for information.
Gather your details: Have your National Insurance number, Unique Taxpayer Reference (UTR), and refund details (e.g., tax year, amount) ready.
Contact HMRC: Use the most effective channel based on your situation (see table below). Start with the Self Assessment helpline for personal tax or the CIS helpline for contractor refunds.
Explain clearly: State your issue concisely, mentioning any previous correspondence or reference numbers.
Request a timeline: Ask for an estimated processing time and what’s causing the delay.
Follow up in writing: If you don’t get a response within 10 working days, send a written query via your online account or post.
Escalate if needed: If delays persist beyond 12 weeks, consider contacting your MP or the HMRC Complaints team for assistance.
Here’s a table to help you choose the best way to reach HMRC:
Contact Method | When to Use | Expected Response Time |
Self Assessment Helpline (0300 200 3300) | General refund queries; open 8am-6pm, Mon-Fri. | Immediate (if you get through); high call volumes in January. |
CIS Helpline (0300 200 3210) | CIS-specific refund issues. | 5-10 working days for complex queries. |
HMRC Online Account | Uploading documents or checking status. | 2-5 working days for updates. |
Written Letter | Formal complaints or no response after 10 days. | Up to 15 working days. |
Now, it shouldn’t be a surprise that peak times, like January to April, see longer wait times due to the self-assessment rush. Calling early in the morning or using the online account can save you time.
Case Study: Raj’s CIS Refund Resolution
Now, consider this: Raj, a subcontractor from Birmingham, filed his 2023/24 self-assessment return in May 2024, claiming a £7,200 CIS refund. His return was flagged because he’d recently changed his bank details and the refund amount was higher than his previous year’s. HMRC requested bank statements and CIS payment certificates. Raj uploaded the documents via his HMRC online account within three days but heard nothing for six weeks. Frustrated, he called the CIS helpline, provided his UTR, and learned that his case was with a Repayment Security Authoriser. After confirming his identity and clarifying a minor discrepancy in his CIS deductions, his refund was processed in eight weeks total. Raj’s takeaway? Responding quickly and using the right contact channel made all the difference.
This case shows how CIS refunds, common among contractors, are frequent targets for security checks due to their size—often thousands of pounds. In 2024/25, CIS deductions remain at 20% or 30% depending on registration status, so overpayments are common if subcontractors don’t track deductions accurately.
Tips to Avoid Refund Delays
Let’s be real—nobody wants to be stuck in HMRC’s queue. Here are practical ways to minimise the risk of security checks derailing your refund:
● Double-check bank details: Ensure the account details in your HMRC account match your current bank. Even a small mismatch can trigger a 14-day hold.
● File accurately: Use HMRC’s online tools or software like FreeAgent to avoid errors in your tax return. In 2023/24, 10% of delayed refunds were due to incorrect figures.
● Avoid voluntary returns: Only file a self-assessment if HMRC sends you a notice to do so, as voluntary returns are scrutinised more heavily.
● Update details early: If you change your address or bank account, notify HMRC well before filing your return to avoid red flags.
● Keep records handy: Store P60s, P45s, and CIS statements in an organised way so you can respond to HMRC requests quickly.
Now, here’s the kicker: small business owners, especially those in CIS, should consider filing early (e.g., April or May) rather than waiting until the 31 January deadline. Early filing reduces the chance of getting caught in the peak-season backlog, and it gives you more time to resolve any issues.
Why Proactive Action Pays Off
So, the question is: why bother with all this effort? Simple—your refund is your money, and delays can mess with your finances, whether you’re a freelancer covering rent or a business owner paying suppliers. In 2024/25, with the higher rate tax threshold frozen at £50,270, many taxpayers are overpaying due to frozen allowances, making timely refunds critical. By understanding HMRC’s process and acting swiftly, you can shave weeks off your wait and avoid unnecessary stress.
Summary and Proactive Strategies
Summing Up the Essentials
Now, let’s wrap things up with the key takeaways you need to know about HMRC security checks on repayments. Below is a concise summary of the most critical points to help you navigate this process with confidence. Each point is distilled into a single sentence for clarity, ensuring you can quickly grasp the essentials without wading through tax jargon.
HMRC security checks are designed to prevent fraud by verifying your identity and the accuracy of your self-assessment refund claim.
Common triggers for checks include high-value refunds, recent bank detail changes, errors in your tax return, or significant income fluctuations.
In 2023/24, about 2.5% of the 12 million tax returns filed were subject to security checks, delaying refunds for up to 300,000 taxpayers.
Delays typically range from 4-6 weeks for simple cases to 12 weeks or more for complex issues like CIS refunds.
Responding promptly to HMRC’s requests for documents, such as passports or bank statements, can significantly speed up the process.
Using your HMRC online account to upload documents or check refund status is faster than relying on postal communication.
Filing early in the tax year, such as April or May, reduces the risk of delays during the January rush for the 2024/25 tax year.
Accurate tax returns, especially for CIS subcontractors with 20% or 30% deductions, minimise the chance of triggering a security check.
Contacting HMRC via the Self Assessment or CIS helpline with your UTR and refund details can help resolve delays faster.
Proactively updating bank details and keeping records like P60s or CIS statements organised can prevent unnecessary hold-ups.
How Can You Stay Ahead of Security Checks?
Let’s face it—nobody wants to be caught off guard by a delayed refund, especially when you’re counting on that cash to cover bills or reinvest in your business. So, the question is: how can you stay one step ahead of HMRC’s security checks? The answer lies in proactive planning. For the 2024/25 tax year, with the personal allowance still frozen at £12,570 and income tax rates unchanged (20% basic, 40% higher, 45% additional) [https://www.gov.uk/check-income-tax-current-year], overpaying tax remains a reality for many. To avoid getting tangled in security checks, start by ensuring your self-assessment return is spot-on. Use HMRC-approved software or a tax advisor to double-check figures, especially if you’re self-employed or juggling multiple income streams.
Another smart move is to keep your HMRC online account up to date. If you move house or switch banks, update your details immediately to avoid red flags. In 2023/24, 10% of refund delays were linked to mismatched bank details, a simple fix that can save weeks of waiting. Also, consider registering for HMRC’s email or text alerts to get real-time updates on your refund status, reducing the need to chase them manually.
Rare Scenarios: Overpayment Relief and Deceased Taxpayers
Now, consider this: what happens in less common situations, like claiming overpayment relief or handling a refund for a deceased taxpayer? These scenarios often trigger security checks due to their complexity, and they require extra care. Overpayment relief allows you to reclaim tax paid in error from previous years, but you must file a claim within four years of the end of the relevant tax year. For example, for the 2021/22 tax year, the deadline is 5 April 2026. HMRC scrutinises these claims closely, as they often involve large sums or backdated calculations, increasing the likelihood of a manual review.
Here’s a table outlining key deadlines for overpayment relief claims:
Tax Year | End of Tax Year | Deadline for Overpayment Relief Claim |
2021/22 | 5 April 2022 | 5 April 2026 |
2022/23 | 5 April 2023 | 5 April 2027 |
2023/24 | 5 April 2024 | 5 April 2028 |
2024/25 | 5 April 2025 | 5 April 2029 |
Be careful! Overpayment relief claims require detailed evidence, like bank statements or payslips, and delays can stretch to 12-16 weeks if HMRC requests additional documents. To avoid hiccups, submit claims early and include a clear explanation of the error, such as misreported income or unclaimed allowances.
For deceased taxpayers, refunds can be trickier. If you’re an executor handling a loved one’s estate, HMRC may require probate documents or proof of your authority to act, triggering a security check to prevent fraud. In 2024, HMRC processed over 50,000 refund claims for deceased taxpayers, with 20% facing delays due to incomplete documentation. To streamline this, ensure you have a grant of probate or letters of administration before contacting HMRC, and use their Bereavement and Deceased helpline (0300 200 3300) for guidance.
Hypothetical Scenario: Emma’s Proactive Approach
Now, let’s paint a picture with a hypothetical case. Emma, a landlord from Bristol, files her 2024/25 self-assessment return in April 2025, claiming a £4,000 refund due to overpaid tax on rental income. Knowing that large refunds often trigger security checks, she takes proactive steps. First, she ensures her bank details in her HMRC online account are correct, having updated them six months earlier after switching banks. She also uses HMRC’s online calculator to verify her tax liability, avoiding errors in her return. When HMRC requests a copy of her tenancy agreement to confirm rental income, Emma uploads it within 48 hours via her online account. Her refund is processed in just five weeks, bypassing the usual delays.
Emma’s story shows how preparation pays off. By filing early, keeping records organised, and responding swiftly to HMRC, she avoided the pitfalls that snag many taxpayers. For small business owners or landlords like Emma, setting up a dedicated folder for tax documents—physical or digital—can make all the difference when HMRC comes knocking.
Why This Matters for Your Finances
Let’s be honest—tax refunds aren’t just numbers on a screen; they’re money you’ve earned and need. Whether you’re a freelancer covering living costs or a business owner reinvesting in your company, delays from security checks can throw a spanner in the works. In 2024/25, with economic pressures like rising costs and frozen tax thresholds, getting your refund on time is more important than ever. By understanding HMRC’s processes, responding promptly, and taking proactive steps, you can minimise delays and keep your finances on track.
So, the question is: are you ready to take control? Check your HMRC account today, ensure your details are up to date, and file accurately to avoid the security check trap. It’s your money—don’t let it sit in HMRC’s coffers longer than it needs to.
FAQs
Q1: What is the purpose of HMRC security checks on repayments?
A1: HMRC security checks aim to prevent fraudulent refund claims by verifying the claimant’s identity and the accuracy of the tax return, ensuring funds are paid only to legitimate taxpayers.
Q2: How does HMRC notify taxpayers about a security check?
A2: HMRC typically notifies taxpayers through a letter or a message in their HMRC online account, requesting specific documents or information to proceed with the refund.
Q3: Can taxpayers appeal a delayed refund due to a security check?
A3: Taxpayers can’t formally appeal a security check, but they can contact HMRC to clarify delays or escalate unresolved issues to the HMRC Complaints team.
Q4: What documents are commonly requested during HMRC security checks?
A4: Common documents include a passport, driving licence, bank statements, P60s, or CIS payment certificates to verify identity or income.
Q5: How can taxpayers check the status of their refund during a security check?
A5: Taxpayers can log into their HMRC online account to view updates on their refund status or contact the Self Assessment helpline for clarification.
Q6: Are there penalties for delays caused by HMRC security checks?
A6: No penalties are imposed on taxpayers for delays caused by security checks, as these are part of HMRC’s internal verification process.
Q7: Can taxpayers request priority processing for urgent refunds?
A7: HMRC doesn’t offer priority processing, but taxpayers can explain urgent circumstances when contacting HMRC to potentially expedite reviews.
Q8: What happens if a taxpayer fails to provide requested documents?
A8: Failure to provide documents can result in the refund being withheld or denied until HMRC receives the necessary verification.
Q9: Do security checks apply to all types of tax refunds?
A9: Security checks primarily apply to self-assessment refunds but can also affect other refunds, like VAT or PAYE, if flagged for fraud risk.
Q10: Can a tax advisor help speed up a security check process?
A10: A tax advisor can ensure accurate submissions and prompt responses to HMRC, potentially reducing delays, but they can’t bypass the check itself.
Q11: Are security checks more common for new taxpayers?
A11: New taxpayers may face checks if their details lack history with HMRC, but checks depend more on specific triggers like high-value refunds.
Q12: How does HMRC verify bank details during a security check?
A12: HMRC cross-references provided bank details with their records and may request a recent bank statement to confirm the account’s legitimacy.
Q13: Can a security check lead to a full tax investigation?
A13: In rare cases, a security check may escalate to a compliance investigation if HMRC identifies significant discrepancies in the tax return.
Q14: What should taxpayers do if they receive a suspicious HMRC communication?
A14: Taxpayers should verify the communication via their HMRC online account or by calling the official helpline to avoid falling for scams.
Q15: Are refunds delayed by security checks paid with interest?
A15: HMRC may pay interest on delayed refunds in specific cases, such as overpayment relief, if the delay exceeds statutory time limits.
Q16: Can taxpayers use alternative documents if they lack the ones HMRC requests?
A16: Taxpayers can propose alternatives, like utility bills for address verification, but HMRC must approve them before processing continues.
Q17: Do security checks affect tax credits or other benefits?
A17: Security checks typically don’t affect tax credits or benefits unless the refund claim is linked to those payments, requiring additional verification.
Q18: How can taxpayers avoid scams related to refund security checks?
A18: Taxpayers should only respond to communications via official HMRC channels and avoid sharing personal details through unsolicited emails or texts.
Q19: Can a security check delay future tax returns?
A19: A one-time security check doesn’t automatically delay future returns, but repeated issues like errors may increase scrutiny.
Q20: What happens if a refund is incorrectly denied after a security check?
A20: Taxpayers can contact HMRC to provide additional evidence or escalate the issue to the HMRC Complaints team for review and resolution.
About The Author:
Adil Akhtar, ACMA, CGMA, CEO and Chief Accountant of Pro Tax Accountant, is an esteemed tax blog writer with over 10 years of expertise in navigating complex tax matters. For more than three years, his insightful blogs have empowered UK taxpayers with clear, actionable advice. Leading Advantax Accountants as well, Adil blends technical prowess with a passion for demystifying finance, cementing his reputation as a trusted authority in tax education.
Email: adilacma@icloud.com
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