VAT repayment procedures
HMRC have revised their guidance that explains how they process VAT repayment returns and VAT repayment supplements. The notice replaces an earlier version of the notice which was published in March 2002.
The notice covers the following main areas:
- How HMRC process VAT repayment claims;
- What happens if HMRC are late in making a repayment;
- HMRC’s code of practice for dealing with repayment returns;
- A taxpayer’s right of appeal.
The notice also explains the process by which HMRC make repayment supplements. In general, HMRC will usually make repayments within 30 days from receipt of a completed VAT repayment return. There are however some important caveats including that the 30 days do not begin until the end of the relevant accounting period.
In addition HMRC are allowed to deduct the time taken to make reasonable enquiries to be satisfied that your claim is legitimate and accurate and to correct errors or omissions on a VAT return.