Understanding HMRC Cheques & Cashing at the Post Office
When HM Revenue & Customs (HMRC) issues tax refunds, overpayment reimbursements, or benefits, they often send payments via cheque. However, many taxpayers wonder: Can you cash an HMRC cheque at a Post Office in the UK? Well, you cannot cash an HMRC cheque directly at a Post Office. However, you can cash an HMRC cheque at a Post Office through a process in the UK, but there are specific conditions and this article will clarify these rules, provide the latest updates, and outline alternative options for those without a traditional bank account.
What is an HMRC Cheque?
An HMRC cheque is a paper payment instrument issued by HM Revenue & Customs to refund overpaid taxes, settle benefits, or return incorrectly charged fees. HMRC usually issues these cheques for:
Tax rebates (PAYE and Self-Assessment overpayments)
VAT and corporation tax refunds
Benefits and tax credit adjustments
National Insurance overpayment reimbursements
These cheques are payable to the recipient and can typically be deposited or cashed at UK banks. However, if you don't have a bank account, finding a way to cash it can be a challenge.
Can You Cash an HMRC Cheque at the Post Office?
As of January 2025, HMRC does not have an official scheme that allows people to directly cash their cheques at a Post Office. However, certain UK banks have partnerships with the Post Office that allow customers to deposit cheques—including HMRC cheques—into their accounts.
Post Office Cheque Cashing Rules (As of Jan. 2025)
Service | Available for HMRC Cheques? | Notes |
Direct cashing at a Post Office counter | ❌ No | HMRC cheques cannot be converted into cash at the Post Office. |
Cheque deposit via Post Office banking services | ✅ Yes | If your bank allows cheque deposits through the Post Office, you can use this service. |
Cheque deposit by mail | ✅ Yes | You can mail the cheque to your bank for deposit. |
Cheque cashing services (non-Post Office) | ❌ No | High-street cheque-cashing services rarely accept HMRC cheques. |
Which Banks Allow HMRC Cheque Deposits via the Post Office?
While you cannot cash an HMRC cheque directly at a Post Office, you can deposit one if your bank is partnered with the Post Office’s cheque deposit service. The following banks allow cheque deposits via Post Office branches:
Barclays
Lloyds Bank
NatWest
HSBC
Santander
RBS (Royal Bank of Scotland)
TSB
Nationwide
Metro Bank
To deposit your HMRC cheque at a Post Office branch:
Ensure your bank supports Post Office cheque deposits.
Bring your cheque and your bank’s paying-in slip (if required).
Ask for a cheque deposit envelope at the counter.
Fill out the details and hand it to the Post Office staff.
Your cheque will be sent to your bank for processing, which can take up to 5 working days.
👉 Latest update: As of January 2025, Metro Bank has confirmed that they still support cheque deposits at the Post Office. However, some banks (such as Monzo and Revolut) do not accept cheque deposits, including via the Post Office.
How Long Does It Take for an HMRC Cheque to Clear?
Once deposited, an HMRC cheque typically follows the standard UK cheque clearing process:
Standard bank deposit: 2-5 working days
Post Office deposit to bank account: 5-7 working days
Cheque deposit by mail: Up to 10 working days
HMRC cheques are drawn from Barclays Bank, meaning they generally clear within the normal cheque processing timeframes.
What If You Don’t Have a Bank Account?
If you don’t have a bank account, cashing an HMRC cheque becomes more complicated. Here are your options:
Open a Basic Bank Account – Some UK banks offer free basic accounts that allow cheque deposits.
Ask HMRC to Reissue the Payment via Bank Transfer – HMRC can send the money via BACS transfer instead.
Nominate Someone Else to Deposit the Cheque – HMRC allows you to nominate a friend or family member to deposit the cheque on your behalf.
👉 Important: If you want HMRC to send the refund as a bank transfer instead of a cheque, you need to contact them and provide your bank details. The HMRC contact page is available here: HMRC Contact.
Alternative Ways to Cash an HMRC Cheque Without a Bank Account
Many UK taxpayers—especially those on low incomes, freelancers, or temporary workers—may not have a traditional bank account. Others may prefer cash payments for personal reasons. Fortunately, there are several alternatives for cashing an HMRC cheque without a bank account.
1. Opening a Basic Bank Account (Fastest & Most Reliable Option)
If you don’t have a bank account, your best option is to open a Basic Bank Account, which is available to anyone in the UK, even if they have a poor credit history.
What is a Basic Bank Account?
A Basic Bank Account is a free, no-frills account that allows you to:
✅ Receive payments (such as wages, benefits, and HMRC refunds).
✅ Pay bills and make direct debits.
✅ Deposit and cash cheques (including HMRC cheques).
However, these accounts do not offer overdrafts or credit facilities.
Banks Offering Basic Accounts (2025 Updated List)
Bank | Can You Deposit HMRC Cheques? | Eligibility for Basic Account |
Barclays | ✅ Yes | Open to UK residents aged 18+ with proof of ID |
HSBC | ✅ Yes | Available to those without a standard bank account |
Lloyds | ✅ Yes | No minimum income requirement |
NatWest | ✅ Yes | Designed for those with poor credit history |
Santander | ✅ Yes | Available to UK residents |
TSB | ✅ Yes | Open to people with financial difficulties |
How to Open a Basic Account for Cashing HMRC Cheques
To open a Basic Bank Account, you typically need:
✔️ Proof of identity (passport, driving licence, or UK residence card)
✔️ Proof of address (utility bill, council tax bill, or tenancy agreement)
Once opened, you can deposit your HMRC cheque and withdraw cash once it clears.
👉 Pro Tip: If you don’t have the required documents, some banks may accept an HMRC letter or benefit statement as proof of identity.
2. Asking HMRC to Reissue the Payment via Bank Transfer
If you don’t have a bank account, HMRC can reissue your cheque as a bank transfer (BACS payment).
How to Request a Bank Transfer from HMRC?
Contact HMRC by Phone – Call HMRC at 0300 200 3300 (for PAYE refunds) or 0300 200 3310 (for Self-Assessment refunds).
Provide Your Bank Details – You need a friend or family member’s bank details if you don’t have your own account.
Return the Original Cheque – HMRC will ask you to send the original cheque back before processing a BACS transfer.
👉 Important: If you’re using someone else’s bank account, HMRC may require written permission from the account holder.
3. Using a Trusted Person’s Bank Account to Deposit the Cheque
HMRC allows you to nominate another person (such as a spouse, family member, or friend) to deposit the cheque into their account.
Steps to Cash an HMRC Cheque Using Someone Else’s Account
✅ The cheque must be endorsed (signed on the back) by you.
✅ The person depositing the cheque should check with their bank if they accept third-party cheque deposits.
✅ Some banks may require a signed letter from you, confirming that you authorize the deposit.
🚨 Warning: Never hand over an HMRC cheque to someone you don’t trust, as HMRC will not issue a replacement if it gets lost or stolen.
4. High-Street Cheque-Cashing Services (Limited Availability)
In the past, high-street cheque-cashing shops (such as Cash Converters, Cash Generator, and The Money Shop) offered to cash HMRC cheques for a fee (usually 5-15% of the cheque value).
As of January 2025, most of these services no longer accept HMRC cheques due to stricter fraud prevention measures.
👉 Alternative: Some independent cheque-cashing services may still accept government cheques. You’ll need:
✔️ A valid photo ID (passport, driving licence, or UK residence permit)
✔️ Proof of address (utility bill or benefit statement)
✔️ To pay a service fee (typically 5-10% of the cheque amount)
🔴 Downside: This method can be expensive, and finding a reliable cheque-cashing service that accepts HMRC cheques is increasingly difficult.
5. Using a Credit Union (Community-Based Option)
A Credit Union is a non-profit financial cooperative that offers banking services to its members, including cheque deposits and cash withdrawals.
How Credit Unions Help with HMRC Cheques
Some credit unions allow members to deposit cheques and withdraw cash after clearance.
Membership is usually based on location or employment sector.
Lower fees compared to cheque-cashing shops.
🔹 Example: The London Mutual Credit Union accepts cheque deposits and provides same-day cash withdrawals once the cheque clears.
💡 Tip: Check the Association of British Credit Unions (ABCUL) website to find a credit union near you: www.abcul.coop.
6. Depositing the Cheque at a Post Office for Another Bank
If you don’t have a traditional bank account but hold an online-only bank account (such as Starling, Monzo, or Revolut), you might be wondering whether you can deposit your HMRC cheque at the Post Office.
Which Digital Banks Accept Cheque Deposits?
Bank | Accepts Cheques? | Can Deposit at Post Office? |
Starling Bank | ✅ Yes | ❌ No (must be posted to Starling HQ) |
Monzo | ❌ No | ❌ No |
Revolut | ❌ No | ❌ No |
If your digital bank does not accept cheque deposits, you’ll need to use one of the other methods listed above.
Key Takeaways
Method | Can You Cash HMRC Cheques? | Processing Time | Fees |
Basic Bank Account | ✅ Yes | 2-5 days | Free |
Reissue as Bank Transfer | ✅ Yes | 1-2 weeks | Free |
Use Someone Else’s Account | ✅ Yes (if bank allows) | 2-5 days | Free |
Cheque-Cashing Service | ⚠️ Rarely | Instant | 5-15% of cheque |
Credit Union | ✅ Yes | Varies | Low fees |
Post Office Deposit | ✅ Yes (if bank allows) | 5-7 days | Free |
Step-by-Step Process, Real-Life Scenarios, and Best Practices
Step-by-Step Guide: What to Do When You Receive an HMRC Cheque
Step 1: Verify Your HMRC Cheque for Accuracy
Before attempting to cash or deposit your cheque, check the following details:
✔️ Payee Name: Ensure the cheque is made out to your correct legal name. If there’s a mistake, you’ll need to request a reissue from HMRC.
✔️ Amount: Cross-check the refund amount with your HMRC statement or tax return confirmation.
✔️ Date: Cheques are valid for 6 months from the issue date.
✔️ Signature & Security Features: Look for official HMRC security marks to avoid fraud issues.
👉 Tip: If there’s an error in the cheque details, contact HMRC at 0300 200 3300 to request a correction.
Step 2: Choose the Best Deposit or Cashing Option
Based on your situation, decide the most practical way to deposit or cash your cheque.
If You Have a Bank Account
✅ Deposit via your bank's mobile app (if your bank allows it).
✅ Deposit at a Post Office branch (if your bank supports Post Office cheque deposits).
✅ Visit your bank in person to deposit the cheque.
If You Do NOT Have a Bank Account
✅ Open a Basic Bank Account (fastest way to cash HMRC cheques).
✅ Nominate a trusted person’s bank account (check with their bank first).
✅ Request HMRC to reissue payment via BACS transfer.
✅ Try a local credit union (some allow cheque cashing).
🚨 Avoid:
❌ High-street cheque-cashing services (fees are high and availability is limited).
❌ Attempting to cash the cheque at a Post Office (it’s not possible).
Step 3: Deposit the HMRC Cheque (If Using a Bank Account)
Depositing via Mobile Banking (Fastest Option)
Many UK banks now allow cheque deposits via mobile banking apps, meaning you don’t need to visit a branch.
Bank | Mobile Cheque Deposit Available? | Cheque Clearing Time |
Barclays | ✅ Yes | 2 working days |
Lloyds | ✅ Yes | 2-4 working days |
NatWest | ✅ Yes | 2-4 working days |
HSBC | ✅ Yes | 2-5 working days |
Santander | ✅ Yes | 2-5 working days |
TSB | ✅ Yes | 2-4 working days |
Nationwide | ❌ No (must use branch or Post Office) | 5-7 working days |
How to Deposit via Mobile App:
Open your bank’s mobile banking app.
Select "Deposit a Cheque".
Take a clear photo of the front and back of the cheque.
Enter the cheque amount and submit.
👉 Tip: If your bank does not support mobile cheque deposits, use a Post Office deposit (if eligible) or visit a branch.
Step 4: Wait for the Cheque to Clear
💰 Standard UK cheque clearing time:
2-5 working days for bank branch deposits.
5-7 working days if depositing via a Post Office.
Up to 10 working days for mail deposits.
🚨 If Your Cheque Bounces:
HMRC cheques are rarely rejected unless they are past the 6-month validity or if the cheque details do not match the payee’s bank records.
Contact HMRC at 0300 200 3300 for reissue if there’s an issue.
Real-Life Scenarios: Common Situations & Solutions
Scenario 1: I Don’t Have a Bank Account – What Should I Do?
Solution: Open a Basic Bank Account (fastest solution) or request HMRC to reissue payment via BACS transfer.
Scenario 2: I Lost My HMRC Cheque – Can I Get a Replacement?
Solution:
Call HMRC immediately at 0300 200 3300.
Provide your National Insurance (NI) number and details of the missing cheque.
HMRC will cancel the original cheque and issue a replacement (usually within 2-4 weeks).
👉 Tip: To avoid delays, update your HMRC contact details to ensure future payments are sent correctly.
Scenario 3: My Bank Rejected My HMRC Cheque – What Now?
Possible Reasons:
❌ The cheque is too old (valid for 6 months only).
❌ The payee name doesn’t match your bank account.
❌ Your bank doesn’t accept government cheques (some online banks, like Monzo, do not support cheque deposits).
Solution:
Contact HMRC to request a new cheque.
If your bank does not accept government cheques, deposit it via a friend’s or family member’s account (if allowed).
Best Practices & Common Mistakes to Avoid
✅ Best Practices for Handling HMRC Cheques
✔️ Deposit or cash the cheque as soon as possible (don’t wait months!).
✔️ If using a friend’s account, get written permission to avoid bank rejection.
✔️ Always check your tax refund statement to ensure the cheque amount is correct.
❌ Common Mistakes to Avoid
❌ Assuming the Post Office can cash your cheque – They only allow deposits for certain banks.
❌ Letting the cheque expire – HMRC cheques are valid for 6 months only.
❌ Not updating HMRC with your correct bank details – Avoid future cheques by requesting BACS payments instead.
The Best Way to Handle an HMRC Cheque
What’s the best option?
✔️ If you have a bank account – Deposit your cheque via mobile banking or at a Post Office.
✔️ If you don’t have a bank account – Open a Basic Bank Account (fastest option) or request a BACS transfer.
✔️ If you can’t do either – Use a trusted friend’s bank account (if allowed) or try a credit union.
🚀 Pro Tip: To avoid cheque issues in the future, log into your HMRC account and update your payment method to bank transfer (BACS) instead of cheques.
👉 You can update your HMRC bank details here: HMRC Payment Information
FAQs
Q1: Can you endorse an HMRC cheque to someone else so they can cash it for you?
A: No, most UK banks do not accept third-party cheque endorsements. The cheque must be deposited into an account that matches the name of the payee. However, HMRC allows you to request a reissued cheque to a nominee if needed.
Q2: Can you deposit an HMRC cheque into an online bank account like Monzo or Revolut?
A: No, Monzo and Revolut do not support cheque deposits. You will need a traditional bank account or another method to cash your HMRC cheque.
Q3: Can you request HMRC to pay your refund via PayPal or a prepaid card instead of a cheque?
A: No, HMRC does not issue refunds via PayPal or prepaid cards. They only offer payments via bank transfer (BACS) or cheque.
Q4: Can you cash an HMRC cheque if your name has changed due to marriage or legal reasons?
A: Yes, but you must provide official proof of the name change, such as a marriage certificate or deed poll, when depositing the cheque at your bank.
Q5: Can a UK Post Office cash any type of cheque, even if it’s not from HMRC?
A: No, the Post Office does not provide direct cheque cashing services. They can only process cheque deposits for certain banks that have partnerships with them.
Q6: How can you track if HMRC has issued a cheque for your tax refund?
A: You can check your HMRC online account under "Tax Refunds" or call HMRC at 0300 200 3300 to confirm the cheque’s status.
Q7: Can you deposit an HMRC cheque using an ATM instead of going into a bank branch?
A: Yes, many banks allow cheque deposits via ATMs. Check with your bank to see if they support this service.
Q8: Can you cash an HMRC cheque in another country if you no longer live in the UK?
A: It depends on the bank in your new country. Some banks may allow you to deposit a UK cheque, but international clearance fees and long processing times may apply.
Q9: What should you do if an HMRC cheque is stolen before you cash it?
A: Contact HMRC immediately at 0300 200 3300 to report the stolen cheque and request a reissue. HMRC may require a police report in some cases.
Q10: Can you ask HMRC to split a cheque into smaller amounts to make it easier to cash?
A: No, HMRC only issues a single cheque per refund. If you need the amount split, you must deposit it into a bank account and withdraw in parts.
Q11: Can you get an HMRC cheque reissued if it is damaged or unreadable?
A: Yes, send the damaged cheque back to HMRC with a covering letter explaining the issue, and they will issue a replacement.
Q12: Can you deposit an HMRC cheque into a joint bank account if only one name is on the cheque?
A: Some banks may allow this, but you may need to provide proof that both account holders have the right to deposit the cheque. Check with your bank.
Q13: Can you request a faster payment method instead of waiting for an HMRC cheque?
A: Yes, if HMRC has not yet issued the cheque, you can update your payment details online and request a bank transfer instead.
Q14: Does HMRC charge a fee for reissuing a lost or expired cheque?
A: No, HMRC does not charge a fee for reissuing lost or expired cheques, but processing may take several weeks.
Q15: Can you deposit an HMRC cheque into a business account if it was issued in your personal name?
A: Most banks do not allow personal cheques to be deposited into business accounts unless you have sole trader status and proper documentation.
Q16: Can you get an HMRC cheque paid in cash at a Money Service Bureau or currency exchange?
A: No, most money service businesses do not accept HMRC cheques. They only deal with cash transactions and currency exchanges.
Q17: What happens if you accidentally destroy an HMRC cheque?
A: Contact HMRC and explain the situation. You may need to return the damaged cheque (if possible) before they issue a new one.
Q18: Can you deposit an HMRC cheque into a savings account instead of a current account?
A: Yes, but some banks may have restrictions on cheque deposits into savings accounts. Confirm with your bank before depositing.
Q19: Can you use an HMRC cheque as proof of income for a mortgage or loan application?
A: Some lenders may accept it as proof of income, but they usually require additional supporting documents such as a tax rebate statement or bank deposit records.
Q20: Can you transfer an HMRC cheque to someone else if you do not have a bank account?
A: No, HMRC cheques are non-transferable and can only be deposited by the named payee. However, you can request HMRC to reissue the cheque in someone else's name if they are your legal nominee.
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