HMRC has come under scrutiny following reports of extended wait times for national insurance contribution refunds. Some individuals, including NHS employees with multiple roles, have faced delays of up to 33 weeks for repayment of overpayments, raising concerns over the efficiency of HMRC’s refund processes.
As outlined in recent correspondence, these protracted timelines have significant implications for workers who rely on timely reimbursements, particularly at a time when household finances remain under pressure.
Growing Delays in National Insurance Refunds
Taxpayers who have overpaid national insurance due to holding more than one job have reported significant delays in receiving refunds. One NHS worker, for example, was informed by HMRC that a repayment of £2,200 would not be issued for an estimated 33 weeks, despite the amount being confirmed in October.
Similar feedback has emerged from others navigating the refund system. These delays have led to frustration and a sense among affected individuals that they are, in effect, providing the government with an interest-free loan. The situation has drawn particular criticism from public sector workers, who often encounter complex pay arrangements.
Experiences of Affected Workers
Many claim that refund processing times have lengthened noticeably since the Covid-19 pandemic. According to taxpayer accounts, HMRC’s system for handling national insurance overpayments which once operated efficiently now appears backlogged, with some individuals waiting months before communication or repayment occurs.
Recipients have expressed dissatisfaction not only with the lengthy timescales but also with the lack of transparency. One affected employee described the experience as “lending the government money with no expected interest”, highlighting growing discontent over HMRC’s pace.
Historical Context: HMRC's Processing Challenges
The current delays are not without precedent. In May 2025, HMRC was criticised for taking over four months to process certain tax and national insurance refunds, a marked increase on the department’s previous turnaround times, which were closer to four weeks.
At that time, HMRC stated that staffing shortages and increased demand were primary causes behind the mounting backlog. Despite recruitment drives in early 2025 aimed at improving service delivery, the payment timescales quoted today suggest that the situation has yet to stabilise. Reports of calls and apologies from HMRC, particularly in response to publicised cases, have done little to quell wider concern.
HMRC’s Response to Backlog
Asked about 33-week wait times, an HMRC spokesperson said: “We’ve seen increased demand on our national insurance services, but we’re recruiting hundreds of extra staff to reduce delays.” The department has acknowledged the strain on its national insurance operations but insists that efforts to address the backlog are ongoing.
While some refunds may be expedited when attention is drawn to them, general processing times remain well beyond what most consider reasonable for straightforward repayments. Official statements have not provided a clear timeline for when normal service levels will resume.
Broader Impact on Taxpayers
Lengthy waiting periods for national insurance refund processing have wider implications, particularly for those whose finances rely on regular and prompt payments. Delays can create additional hardship for health workers and others already navigating multiple employment contracts or variable incomes.
There is also concern about the lack of automatic compensation or interest on overdue sums. Taxpayers have questioned why they are disadvantaged by administrative inertia, given that errors in overpayment are not of their own making.
Final Summary
The recent delays in processing national insurance refunds at HMRC highlight systemic challenges facing the tax authority, exacerbated by increased demand and historical staffing constraints. With some individuals waiting up to 33 weeks for repayment, there is mounting pressure for HMRC to improve its response times and customer communication.
For those affected many of whom are key public sector workers long waits for money owed have become a significant source of inconvenience and frustration. As HMRC continues recruitment and process updates, the situation remains under close watch by taxpayers and advocacy groups alike. Those seeking information about their own tax or national insurance matters may also find the Pie app a useful tool for tracking updates on UK tax administration.
