HRMC has explained a restriction on tax refunds after a customer was frustrated to be told they couldn't claim their tax back online.

The disgruntled person contacted the tax authority over social media, claiming they had found out the bank details they had provided to claim their refund online had been rejected.

They had then been issued a cheque for the amount that would arrive in the post within two or three weeks yet there was "no communication via app or email" before the cheque was issued.

They said they had requested for the cheque to be cancelled and for them to resubmit bank details but had been told this was "not possible".

The unhappy person asked HMRC in frustration: "Why is this process so backwards?" HMRC responded to explain the rules: "That's correct unfortunately. Once a cheque has been issued, a bank transfer isn't possible."

But the customer persisted in asking: "Why was it issued without me being told? The app still says it's being processed.

"A cheque can be cancelled, I requested that so why can't this be done? Seriously backwards process."

HMRC was asked to clarify the rules. The group said that if you get a P800 tax calculation letter about an overpayment, this will explain how to claim the cash.

People in this situation can often claim online through the Government website or via the HMRC app using their P800 reference number and National Insurance number.

There is also the option to use the phone if you can't access digital services. However, customers who are owed a refund over more than a single year, or who are claiming funds back for the current tax year, are currently not eligible to receive a bank transfer automatically.

HMRC said it is working to make these customers also eligible for bank transfer payments, with hopes for this expanded system to be brought in by the 2025/2026 tax year.

The tax authority to explain the rules around ISAs. A saver contacted the group as they had made a £1,000 deposit on April 4, during the previous tax year, but it had only cleared on April 7, during the current tax year.

But on the same day they had paid in £20,000 into a new ISA account. A person can deposit up to £20,000 each tax year into ISAs, with no tax to pay on any interest earnings or investment growth.

In response, HMRC said: "If you oversubscribed in previous year you should not do anything and should not attempt to correct the situation. HMRC will write to you if appropriate.

"If this happened in the current tax year, you should contact your ISA provider to instruct you to remove the overpayment to correct the error.

"Because those funds should never have been in the ISA, there is no tax relief and tax is therefore payable on any interest or growth."