How long vat repayment

If the refund is substantial, unexpected problems in getting the refund can cause serious damage to the liquidity and trading capability of business. A common reason for a delay is that the VAT return has prompted an investigation by HMRC and the refund will not be paid until that investigation is complete to the satisfaction of the VAT inspectorate.

HMRC will probably launch an enquiry if the repayment due is especially high, or if it is the first VAT for that business and shows a repayment due. Bennett Verby advise clients to submit a VAT repayment return as soon as possible, and not wait for the actual due date. If you are anticipating a repayment, then it would be best to submit it at the beginning of July.

Of course, it is also extremely important that a business should make sure that the VAT return is correct and accurate in all aspects. An error in the return stops the day clock, because HMRC will not process the return until it is satisfied that the return is right. In addition, the firm always advise that a return which is making a substantial claim for repayment is submitted along with evidence to support the repayment claim.

If the claimed VAT repayment is high, or higher than usual, there is a good chance of its being queried. For their clients, when they submit the VAT return, Bennett Verby send evidence for the amounts with copies of VAT invoices and the reason for the claim to pre-empt enquiries. Then, HMRC can see that evidence for your repayment has been provided which is often sufficient to obviate any enquiry. New start-ups will often find themselves claiming a VAT refund simply because of set up costs such as property purchase an extremely problematical issue on investment in fixtures, fittings and equipment.

Build UK had been among the construction trade bodies opposing the introduction of the tax change before it came into effect in March. David Savage, partner at law firm Charles Russell Speechlys, told Construction News that the tax body needed to ensure it provided a swift service to support companies. However, if we select it for verification checks, this could take 30 days or longer, dependent upon how long it takes the customer to provide the information requested to verify the return.

This is based on the length of time it takes to verify and pay the claim, excluding any delays from the customer or their agent. You are here: Financial. The Government is seeking to pass legislation in the Finance Bill which replaces this five per cent supplement with interest payments instead. This would have been unfair to the businesses concerned.

And it would have removed the incentive for HMRC to undertake enquiries quickly and efficiently, and make VAT repayments in a timely fashion.