Are you due a VAT repayment?

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Have you charged your customers less VAT than what you’ve paid on a purchase?

If yes then HM Revenue & Customs (HMRC) will repay you the difference.

When completing your tax return you will be asked to fill in the total amount of VAT charged (Box 3) and the total amount of VAT paid (box 4).

If Box 4 is more than Box 3, you will be repaid the difference usually within 10 working days of HMRC receiving your return; the money is paid direct into your account.

HMRC have requested that they are only contacted should you not have heard anything about your claim after 21 days.

“You may get compensation (known as a ‘repayment supplement’) if HMRC takes longer than 30 days to approve (‘authorise’) your repayment,” said HMRC.

“The 30 days starts from the day HMRC receives your VAT Return and ends the day your repayment is approved, not the day you get it.

“HMRC doesn’t count days taken to check your return is accurate and legitimate, and to correct any errors or omissions, as part of this 30-day period.

“The repayment supplement is £50 or 5% of your repayment - whichever is the higher amount.

“If your return is received before the end of the accounting period it’s for, the 30 days will start at the end of the period.”

You won’t get a repayment supplement if*:

  • HMRC receives your VAT return after your payment deadline
  • you made errors on your return that reduce your claim by more than 5% or £250 (whichever is higher)
  • you have earlier returns missing at the time your current return is received by HMRC


For further information on this or any other tax issue contact Peter Way-Rider, tax manager, on 01244 343504.