In 2008, having failed to submit a VAT return in time, our small company had its VAT bill assessed by HMRC. We paid & thought that was the end of the matter. When I saw the outstanding return showing as still "live" on the website I assumed that was just one of those things I would deal with when I had time, in the next twenty years or so.
Scroll on to the present. VAT refund claimed. VAT refund nowhere to be seen. Call made to nice Scottish lady on VAT advice line. Nice Scottish lady advises that the holdup is caused by this outstanding return. Wow, I didn't realise there were actual incentives in play here. Back to the files, calculations made, return belatedy submitted. Computer warns sternly that the (small) sum due will be deducted from our bank account in 3 days. Waah, but it is still quite a lot less than the much larger refund that was being delayed, so there has been a net gain.
The question is, given that (a) we did already pay the assessed sum as VAT for that period back in 2008 and (b) the 2008 return shows a sum smaller than the assessment, will HMRC refund the assessment?
- If they will, does it happen automatically?
- If they do and it does, will it be as quick as the 3 days it takes them to claim the tax due?
-- Edited by chatcat on Sunday 7th of August 2011 11:04:35 PM
If HMRC owe you money, they should repay it; AND they should repay automatically. However, their current practice seems to involve not making repayments promptly.
Ask them to repay the assessment amount. I suggest, also, ask them for a full Statement of Account from the date of the original Return to present. This will confirm if there are any other matters not dealt with.
