HMRC Tax Refund Funding

Query re: structured e-mail

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I run the payroll for a director client who made a large salary payment in May and June of the 2023-24 tax year. They wish to take a small salary in December 2023. This will generate a substantial tax refund (due to unused personal allowances and basic rate bands in previous tax months), which I wish to apply for to be refunded by HMRC via Tax Refund Funding.

The HMRC website states that an agent can apply for tax refund funding by means of their structured e-mail, which I have used before on many occasions where a client has paid too much tax in a previous job, or where there has been an in-year tax code change.

However, I am not sure which box to tick in this case, as neither "If the code shown on a new employee's form P45 is the reason a tax refund is due please enter the date of commencement below." nor "If a new coding notice is the reason a tax refund is due, enter the date a new coding notice was issued by HMRC below." are appropriate.

Any suggestions would be much appreciated! The client would prefer to not have to wait until their 2023-24 self assessment to receive the tax refund from HMRC.

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By FactChecker
04th Dec 2023 21:27

I understand that "The client would prefer to not have to wait until their 2023-24 self assessment to receive the tax refund from HMRC" ... but the ball is in HMRC's court and their attitude is that this scenario is exactly what the in-year cumulative processing is intended to cover (even if that means having a credit balance at Y/E).

AFAIK the structured email route was made available only as a means of correcting the impact when it is due to something (like a tax code) going wrong at HMRC's end.

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By sparkler
05th Dec 2023 08:07

That's helpful - although disappointing! Looks like the self assessment will be the only way to do it then. Hopefully at least it means that the client will be keen to get their self assessment documents to me promptly!

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By sparkler
13th Dec 2023 10:08

Just to update, I called the Employer Helpline about this query. They confirmed that it is possible to request in-year funding for a tax refund, and that I would need to write to:
Corporate Treasury HMRC BX9 1BG, clearly stating the employee(s) NI number, full name, pay period that the refund relates to and the company bank details, and clearly marking the letter "Funding Application for PAYE". Their suggested timescale was 3 weeks to process, with payment following within 7 days.
I have now written to HMRC and will update as to the outcome in due course.

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