VAT Repayment Delayed

Our July VAT return was submitted on 9th August and the only update on Government Gateway is that the estimated repayment date (8th September) has passed. As a group of companies we have fairly significant VAT refunds each month, which are key to cashflow, and following an implementation of automated Accounts Payable software, we had an unusually high backlog in July. It meant that we had VAT liabilities to pay for May & June, which were submitted on 9th August using the logic that HMRC might net the values (not the case and they started charging interest until the payments were made) We are now in the serious position, given the size of the VAT refund and zero communication from HMRC, that we will be unable to fulfil our creditor obligations in the coming weeks. I have been on the phone every 2/3 days with the VAT helpline (if it can be called that!) only to be told that the Compliance Dept cannot be contacted and we can only send one referral to them. Despite passing on my contact details I am yet to hear anything from them. Apparently there is no escalation process and you have to sit tight and wait for a call! I can fully understand the need for compliance checks; however, the lack of communication and accountability at HMRC is disgraceful and it poses the question of how many businesses have failed due to cashflow issues caused by late repayment.

Hi,
We are sorry that your VAT repayment claim is taking longer than expected.
Thorough checks are carried out by the compliance team and sometimes this can mean that the repayment takes a little longer to process.
When you called the Helpline we would have checked that there was no issue with the return and then sent off an urgent referral to the compliance team to progress it.
Thank you.

Hi, I can understand the need for thorough checks, although I can't imagine how detailed these can be from the limited information we submit each month. Surely a thorough check would require them calling the business to ask a few questions and understand the situation better. Everytime I have called the helpline they've been unable to give me any updates except that it's been referred to the Compliance Dept and I have then asked them to send additional referrals twice due to the urgency. They can't tell me if there's any issue since that information isn't available to them. Is there any other options available to us because we are in desperate need of that cash or at the very least any form of update?

Hi,

I'm sorry there is a delay with your VAT repayment.

Please bear with us while the Compliance Team are doing the necesssary checks required during this process.

Thank you.

Hi Daniel, I m in a similar situation. Did you hear anything from Hmrc about your payment?