After the end of the tax year, HMRC checks to see if an employee has paid the correct amount of tax under PAYE. The reconciliations for 2023/24 are in progress. 

It may be that the employee has paid too much tax, perhaps because they have been put on the wrong tax code. In this case, HMRC will write to the employee and tell them that a repayment is due. Generally, letters are sent between June and November after the end of the tax year. 

Previously, HMRC sent a cheque to the employee if they had not claimed the repayment online after 21 days. However, since 31 May 2024, HMRC has not issued cheques automatically. Instead, the employee needs to claim their repayment.  

The tax calculation letter includes instructions on how to claim the repayment and the alternative process for those that cannot claim online. The employee can request a cheque through this process if required.  

For further information, see the July 2024 issue of HMRC’s Employer Bulletin and HMRC's guidance on tax overpayments and underpayments.