VAT repayment supplement

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of when HMRC would be expected to pay a repayment supplement to a business.

The VAT repayment supplement has been replaced by a revised repayment interest regime for periods beginning on or after 1 January 2023. See the Interest ― repayment interest on VAT credits or overpayments guidance note.

This guidance note therefore deals only with the rules as they apply to periods beginning before 1 January 2023.

When is HMRC required to pay the repayment supplement?

If HMRC does not authorise payment of a legitimate refund claim within 30 net days from receipt of the VAT return, it is liable to pay the business a repayment supplement which is a form of compensation.

The 30 days’ time period normally runs from the date that the VAT return was received by HMRC. However, if the VAT return is received before the end of the VAT return accounting period, the 30-day period will not start until the first day of the following month.

Legislation allows HMRC to effectively stop the

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more

Corporation Tax

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more

��Ƶ

VAT repayment supplement

VAT repayment supplement