HMRC - VAT Return - sent for Further Checks

[gabrielaburlac]

Good morning. I run a Construction business where I constantly purchase building materials. Due to the amount monthly I have decided a year and a half ago to change the VAT period to monthly returns. All well and good uo to June this year. I have submitted my May-25 VAT return on the 1st of June 2025 with a repayment to myself due from HMRC. More or less same amount as previosu months. The return was sent for further checks on the 2nd of June 2025 and has had the same status since with no HMRC contact whatsoever. I then submitted the June 2025 VAT return on the 1st of July 2025 and this again was sent fort further checks - once on the 1st of July 2025 and second on the 2nd of July 2025. Same status at present. For the May return it now says payment date has passed we will contact you to explain. I spoke to HMRC online on a few occasions. On the first occasion I was told that a referral will be sent to the VAT repayments team. No contact to date. On another occasion the operator told me he will manually release the payments and that I should be able to see the amounts in my account in 7-8 business days. He also provided a reference number for the conversation. Upon speaking to another operator a week later, he mentioned no record of this conversation is found and that the returns are still being processed and that another referal has been sent to the VAT repayments team and I should hear back in 10 business days. As I am approching these 10 business days and still have heard nothing from HMRC, I would like to ask if there is anything I can do my end. I would like to mention I use Clearbooks to submit the returns, all details are up to date and this is not a first return or a first repayment. Amounts have always been similar. What could the problem be and how could I help to resolve it if there is no way of comunicating directly with HMRC regarding this matter? I have also sent a complaint online which on the account it shows as Completed but no formal response has been received my end.

 

[Bobbo]

Not sure what more you expect to be told here that you weren't on the other forum.

 

[Ozzy]

Not sure what more you expect to be told here that you weren't on the other forum.

What was the advice given, in case anyone with a similar issue was to come here seeking assistance?

 

[Bobbo]

What was the advice given, in case anyone with a similar issue was to come here seeking assistance?

Can't post links, so to summarise/paraphrase another commenter:
- HMRC suck at dealing with these and it will take time
- OP's industry, construction, is easy pickings for HMRC so more subject to attention than others
- Subsequent VAT return repayments won't be released until the May one is closed
- Keep calling is the best strategy for now to ensure it is allocated to someone and the wheels are slowly turning
- Make sure all ducks are in a row regards the May return for when/if HMRC do query it

 

[MyAccountantOnline]

As frustrating as it is my advice definitely echos the above - Keep calling

I wonder if HMRC are flagging the VAT returns as they are being submitted so quickly after the VAT period end??

 

[DWS]

Can't post links, so to summarise/paraphrase another commenter:
- HMRC suck at dealing with these and it will take time
- OP's industry, construction, is easy pickings for HMRC so more subject to attention than others
- Subsequent VAT return repayments won't be released until the May one is closed
- Keep calling is the best strategy for now to ensure it is allocated to someone and the wheels are slowly turning
- Make sure all ducks are in a row regards the May return for when/if HMRC do query it

That was very restrained!
I can post links but have chosen not to in fairness to the OP.

 

[Paul Kelly ICHYB]

If you continually receive refunds, they will be suspicious, regardless of what industry you are in.

Not knowing the ins and outs of VAT in the construction trade, I wonder why there are lots of refunds - are sales VAT exempt/zero rated?

 

[DWS]

If you continually receive refunds, they will be suspicious, regardless of what industry you are in.

Not knowing the ins and outs of VAT in the construction trade, I wonder why there are lots of refunds - are sales VAT exempt/zero rated?

Domestic Reverse Charge
So sub contractors charge VAT but do not actually receive it and have to pay it to HMRC, but they can still claim all the input VAT.
Some of my clients are receiving refunds every quarter of between £20k and £30k so you can understand HMRC looking at these closer

 

[Paul Kelly ICHYB]

Wow!

They will look at any way to not pay money back!

 

[DWS]

Wow!

They will look at any way to not pay money back!

HMRC introduced the DRC to reduce fraud!

 

[Bobbo]

That was very restrained!
I can post links but have chosen not to in fairness to the OP.

Hopefully OP has taken on board the points not related to VAT being made on the other forum and so don't need mentioning again

 

[Daybooks]

What was the advice given, in case anyone with a similar issue was to come here seeking assistance?

The issue picked up on is that their Company House filed company accounts ( the latest being filed one day after the company year end ) is so full of errors as well as not balancing that offering any constructive advice seems of little value to either originator ( because perceived as will be ignored; seems reality ) or indeed the contributors ( banging head against brick wall ).

Whether the full accounts and tax computations were also filed with HMRC is unknown but nevertheless the publicly available information is such that the poor quality of accounts prepared would lead anyone to question the accuracy of any VAT reclaim.

The OP should address these issues first ( which is likely to open another can of worms ) and then the current issue may well disappear albeit not quickly; or more likely be the least of concerns.

The advice to anyone with similar issues would be: “Get your accounts right.”