Another wrote she was also waiting on a five-figure refund after overpaying tax on a pension withdrawal. The taxpayer pleaded for help saying the money was her only income.
“HMRC appear to be a law unto themselves with taxpayers money and I’m at my wits as the money is required for living expenses,” she said.
Telegraph Money reader David Samuel-Champs, 76, from Hampshire, applied for a rebate worth just £316 at the end of April, but said he was told his request would not be processed until May next year. He said he could not fathom how HMRC could justify a processing time of 12 months for such a simple and small refund.
“There appears to be something terribly wrong with our civil service and it desperately needs addressing,” he said.
Small businesses have also reported long delays in obtaining VAT rebates, which is hitting their cash flow just as fresh omicron restrictions threaten their profits.
Newly self-employed people have also faced lengthy waits for the most basic requests, such as registering for “Unique Taxpayer Reference” numbers required for annual tax returns.
They face penalties if they fail to file and pay their dues by the January 31 self-assessment deadline.
HMRC said it was working through the backlog, but a tax office source confirmed the annual deadline would not be pushed back this year, as it was last year, despite the long queues, saying there were “no plans for easement”.
A spokesman said the Revenue was working through a backlog of post that “had built up over the past year” as it focused on pandemic support measures, saying there had been a “steady reduction” in waiting times.
He added that staff were working on clearing all tax return requests by the middle of December to avoid taxpayers being unfairly hit with fines for late filing.
“We understand the frustrations of customers and agents who are waiting for us to get to their individual enquiry, and we are sorry that we can’t get to everyone more quickly. In addressing our work queues, we’ve prioritised our initial efforts where we can protect livelihoods and put money in the pockets of our customer groups in greatest need,” he said.
