HM Revenue and Customs (HMRC) has updated its PAYE tax refund rules for multi-year claims.
Starting in August 2026, most workers whose multi-year claim is approved will no longer get an automatic refund cheque. HMRC will send you a P800 tax calculation letter, but you must actively request your money.
If you sit back and wait for a cheque, you will delay getting the money HMRC owes you.
What Has Changed?
HMRC confirmed this update in its Employer Bulletin on 19 August 2026.
The way you submit a multi-year claim stays the same. The change happens only after HMRC approves your claim.
HMRC will send you a P800 letter showing your calculated refund. For most multi-year claims, you must request your repayment directly instead of expecting an automatic paper cheque. This brings multi-year claims into line with standard P800 repayment rules.
Automatic cheques have not ended for everyone. Some P800 letters will still state that HMRC will mail a cheque. Always read your letter carefully and follow its exact instructions.
Who Is Affected?
This change mainly affects employees claiming PAYE tax refunds for more than one tax year.
You might overpay PAYE tax if you:
- Changed jobs mid-year.
- Were placed on an emergency tax code.
- Had multiple sources of income, a common situation among contractors juggling several engagements.
- Had eligible work expenses from previous tax years.
If HMRC confirms you overpaid tax, check your P800 calculation right away.
How Can Workers Claim Their Refund?
Once HMRC agrees to your refund, you can request payment through these routes:
- HMRC App or Personal Tax Account: Log in online to claim your money directly into your bank account.
- GOV.UK Web Service: Use the official online tool with your P800 reference number and National Insurance number. You do not need a full online account to use this service.
Online bank transfers usually arrive within five working days. If you prefer a physical cheque, you can still request one online. If you cannot use digital services, contact HMRC directly to process your claim.
HMRC Is Also Sending P800 Text Reminders
On 24 August 2026, HMRC updated its official guidance regarding text messages.
HMRC may now send you a text reminder if they mailed a P800 refund letter and you have not responded.
⚠️ Fraud Warning: A genuine HMRC text message will never ask for your personal info or bank details, and it will never include a link to claim. Never click unexpected links asking for financial information.
Older PAYE Claims Still Have a Deadline
Standard overpayment relief rules give you four years from the end of the tax year to claim your money back.
- 2022/23 Tax Year Deadline: You must submit a valid claim by 5 April 2027.
If you think you overpaid PAYE tax in earlier years, review your pay records before the statutory claim window closes.
What Should Employers Do?
Employers and payroll teams should inform their staff about this update, particularly those managing business payroll for multiple employees. Focus on workers who have submitted claims across multiple years.
Remind your team to read their P800 letters thoroughly and follow HMRC’s specific steps. Employees should not assume every refund arrives automatically.
How Lanop Can Help
Managing PAYE refunds gets tricky when you deal with multiple income sources, changing tax codes, employee expenses, or several tax years at once.
Lanop Business & Tax Advisors can:
- Review your historic PAYE records to spot overpayments.
- Verify if your claim is still within the four-year statutory limit.
- Guide workers, company directors, and business owners through HMRC’s claim process as part of wider tax planning.
If HMRC owes you money, make sure you take the right steps to claim it. Waiting for an automatic cheque could leave your cash stuck in the system. Contact Lanop today for clear, proactive advice.
