First VAT return on set up, how long befor HMRC pays

[bandaid]

I submitted my first VAT return at the end of May, ( my accounting period,) and as I have paid out VAT for the business set up, but not started to trade with clients yet, the whole amount of VAT is being claimed back, this is a sum of over £6,000. ( most of which I paid to HMRC on import of the vehicles) can anybody please advise what would be an average, or reasonable time to expect HMRC to make the payment to my VAT bank account please?, obviously this is a figure which will seriously effect my working capital if I have weeks and weeks to wait.

thanks,

Adrian

[HC-Martin]

I was in the same situation as you and got my first cheque back middle of last week.

[Jenni384]

I would expect they'll issue your money by the end of next week at the latest. They're usually pretty prompt with VAT refunds, especially if they know your bank details (usually specified on your application form) as they will pay by BACS.

Fingers crossed for you :)

[bandaid]

oh, thanks both, that makes me feel better,

[Jaydee]

I don't think that you should be expecting it too quickly.

Given the size of the first reclaim, I suspect that the return will be chosen for "pre-credit verification". This procedure means that your local VAT office (via Southend and then Liverpool!) will make contact to verify that the return is correct.

Depending upon the complexity of the return's transactions, the pre-cred officer will either inspect at your premises or deal with faxed documents.

Once the officer is satisfied that the return is correct, the funds will be with you within five days.

[HC-Martin]

bandaid - sorry - just read what I had written - my return was up until the end of April - Not May! Still, not bad though.

[bandaid]

oh.....bum.

still, if they keep me waiting, when its my turn to pay them I'll....I'll.....probably do nothing and pay on time.

never mind, thanks guys,

now, where's that grovelling mat and the bank phone number?

[Mister B]

I would have expected you to receive the refund this week.

I take on board what Jaydee says, but if the majority of money was paid to the HRMC when you imported the vehicles, as long as you have a tax certificate to support this, then I see no reason why it should be delayed.

I was in a similar position to you last year, and I received my refund painlessly.

No complaints with HRMC at all, treated me very fairly.

Mister B

[Jaydee]

My vote still goes for pre-cred verification first.

The crucial factor is that it is the first return. There is a de-minimus level of first return reclaim that will not be verified but that is nowhere near as high as £6k.

While HMRC may well tie up the fact that the VAT has been paid over, they are likely to want to ensure that there should be no input blockage etc.

I hope for the OP's sake that I am being over-prudent, but I would advise that he does not expect the refund for a while yet - although I agree that the procedure is quite painless once the VRN lands in the pre-cred officer's intray.

[davebrown]

Hi

First return, repayment - it is likely to be queried so the best thing you can do is email/send a copy of the VAT Certificate from the import so that they can see what is causing the repayment. This applies in any situation - if you have an unexpected repayment, tell them why and they might not bother visiting you to find out why.

[MikePage]

Have you tried 'phoning them up & asking them?
I've done this before for first return repayments, admittedly for much larger repayments, for clients; You can at least find out if it has been pulled for pre-check.
By asking (nicely !) you can find out who is dealing with it & talk directly to them & offer to fax over copies of purchase invoices etc. to help validate claim or do what ever it takes to speed things up. Worst case is that you can confirm it has been received & is in a queue

Regards

Mike Page