HM Revenue and Customs (HMRC) has issued an update after growing complaints from taxpayers reporting delays of up to 21 months in receiving tax refunds. The latest clarification came after an individual took to social media to question the long waiting times for Construction Industry Scheme (CIS) self-assessment refunds.
The taxpayer’s frustration sparked broader debate among contractors and subcontractors who rely on timely repayments to manage their cash flow. HMRC responded publicly, acknowledging the delays and directing individuals to its online tool for checking current processing timelines.
Frustration Builds Over Long Wait Times
In a social media exchange, one taxpayer asked, “Are CIS self-assessment refunds really taking up to 21 months to process?” The HMRC support team replied: “Sorry for the inconvenience caused by the wait. Our response times can vary, but you can check the latest dates we’re currently working on using our online tool.”
Despite the apology, many users have expressed disappointment, noting that refund timeframes seem inconsistent and frequently change. One respondent commented that the waiting period “keeps changing daily,” underscoring concerns about transparency and efficiency in HMRC’s refund system.
HMRC Urges Use of Official Online Tools
In its clarification, HMRC emphasized the importance of using the official government website to check up-to-date response times. The online service allows individuals and businesses to view current processing timelines for a wide range of tax services, including:
- Child Benefit
- Construction Industry Scheme (CIS)
- Corporation Tax
- Employers’ PAYE
- Income Tax
- National Insurance
- Self Assessment
- Tax Credits
- VAT
By using this resource, taxpayers can verify progress on their queries and avoid misinformation circulating online.
Tax Professionals Call for Greater Efficiency
Industry experts have urged HMRC to address these delays, warning that extended wait times can cause serious financial strain particularly for self-employed workers and small business owners in the construction sector. Timely tax refunds are critical for maintaining liquidity and ensuring that subcontractors can meet ongoing expenses.
Accountants and tax advisers have also suggested that HMRC invest in improved digital infrastructure to process claims more quickly and reduce administrative bottlenecks.
Efforts Toward Improvement
HMRC has acknowledged ongoing challenges in handling the volume of refund requests and correspondence, particularly during the peak self-assessment season. The department has increased resources for its digital systems and staffing in an attempt to improve turnaround times.
Still, taxpayers have been encouraged to file returns accurately and early to avoid delays, ensuring that all supporting documents and CIS statements are in order before submission.
Ongoing Communication Challenges
Despite HMRC’s reassurance, many taxpayers argue that the department’s communication systems are outdated and difficult to navigate. Several users have reported difficulties in reaching HMRC representatives through phone or web chat, often experiencing long wait times or receiving generic responses. This has amplified frustration among small business owners who depend on quick updates to manage their financial planning.
Tax professionals have pointed out that such communication barriers often lead to confusion about what stage refund claims are in. Some claimants, unsure whether their documents have been received or processed, end up submitting multiple inquiries further burdening the system and prolonging delays for everyone involved.
Economic Impact on Contractors and Subcontractors
For many contractors and subcontractors in the UK, especially within the construction industry, cash flow is critical. Delays in receiving tax refunds can lead to short-term liquidity problems, late payments to suppliers, and an inability to invest in new projects. Experts warn that small businesses operating on thin margins may be particularly vulnerable to these financial disruptions.
The Federation of Small Businesses (FSB) has urged HMRC to streamline the CIS refund process, suggesting automated verification systems and better integration with digital bookkeeping tools. Such improvements could help speed up claim approvals and minimise administrative friction for both HMRC and taxpayers.
The ongoing delays in CIS refund processing underscore the challenges faced by thousands of UK contractors navigating the HMRC system. While the tax authority’s online tools can help track progress, clearer communication and faster resolutions remain crucial.
With Pie, taxpayers can simplify their refund tracking, monitor HMRC updates in real time, and manage their tax obligations confidently through one intuitive platform helping both contractors and subcontractors stay financially on track.