VAT Refund not received , offset against corporation tax

I received notification that we were due a VAT refund for the last quarter and that a cheque had been posted in February. However having never received this I logged in and it shows that this refund of £4465 has been offset against our corporation tax liability. I am a bit confused as in December we set up a monthly DD payment plan to clear this corporation tax and it has been paid monthly ever since with no issues. I just want to confirm that if this VAT refund has been used to pay some of this liabilty the DD will be adjusted accordingly and therefore we will only have to pay the balance of £1106 and HMRC will automatically amend the DD and cancel it early. We were supposed to pay it until July but this now means we only owe this months payment and the corp tax is then clear. I can understand using one to clear the other but our accountants had never seen this done with VAT refund / Corp Tax liability and I want to make sure its all correct. Many Thanks

Hi,

This would be standard procedure. If you are due a VAT refund and you owe money for another tax then the VAT repayment will be offset against these debts before we can make a repayment to you.

Please contact our VAT team so that we can investigate this and confirm that this has indeed happened.

VAT: general enquiries

Thank you.