Update to HMRC repayment delays

ArabianNights

Free Member
Dec 25, 2011
286
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I made a post about this recently, which I was going to update, but thought it might be better to create a new post about it.

As some know from my previous post, I was due a HMRC repayment of VAT mid-August which was delayed. This was for the June filing. We file monthly. As of today, 1st September, it is still not being paid. In fact, today the business was supposed to have received repayment for the following month return for July. Guess what? It hasn’t been paid.

Both VAT returns have neither been approved, disapproved or rejected. I haven’t been sent any emails or letters officially asking for any further information or invoices. I have had zero communication from HMRC. Its as if my returns have been forgotten and passed through some net. Of course I expect compensation.

I have been on the phone to HMRC every single day, consistently since a week before the August repayment was due, because myself being the loopy crazy psychic woman that I am, my intuition and gut feeling was telling me strongly that the August repayment will not come through. I wished my angels would have explained why, but even they don’t know lol and HMRC do not know either. Every time I call “we will send an email / message to the relevant team” - nothing. I was promised call backs. Nothing. I submitted a formal complaint the day before the August payment was due, and they have until the 15th September to provide a response.

So here I am, missing 2 months’ worth of repayments and business is at a standstill. Due to cash flow issues, I have to stop selling, and reject orders because I no longer have the personal funds to pump into the business, until HMRC have decided to wake up and smell the coffee. I ranted to the poor woman on the phone yesterday, telling her that if the tables were turned the other way, I would have been laden with fines and fees if I had filed my returns late or didn’t pay taxes due. She said, well of course. They have nothing to say.

This is a new start up, a new business and it’s very demotivating. I don’t intend to demotivate anyone here, but I wanted to put this post out here for others, in case they are in this predicament.

If I don’t get a response to my complaint from HMRC by the 15th September, then the only solution would be to continue the procedure and go to the Adjudicator. Wish me luck. Thanks
 

ArabianNights

Free Member
Dec 25, 2011
286
22
@ArabianNights ,

I'm sorry to hear about the problems this is causing. Sadly I have no words of advice, other than tell you that you are not the only one in this boat.

I wish you luck and keep us updated!
Thank you! That’s very kind ?

I’m glad to know that I am not the only one, doesn’t feel like this, of course! What’s frustrating is that it’s not even in thousands of pounds here, we are only talking a few hundred pounds … which is a lot for a new small start up in this phase! Thank you
 
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ArabianNights

Free Member
Dec 25, 2011
286
22
'Wish me luck'

Good luck!
Unfortunately, that's the only assistance I can give, as you are doing all that can be done.
Thank you! ? that’s very kind. I have submitted a formal complaint, and waiting for that to come through with a result. I was due another repayment for the month of July this past Monday - surprise surprise that didn’t turn up either! And I just did my return for August. Going back months late now!
 
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ArabianNights

Free Member
Dec 25, 2011
286
22
Send HMRC late repayment fine of £150.00 which is subject to increase to £300 if not dealt with in the next 10 working days.
That’s interesting! I know that there is this payment supplement compensation which is 5% or £50, but I didn’t know about this. Is there any link about this or some sort of legal basis? Thanks ?
 
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UK Contractor Accountant was making a facetious comment. it has no legal basis, so ignore it.
has no legal basis - when I worked in the City (London) we did have a case where we sent HMRC a demand for £1,000 as they lost clients records and asked us for documents so they could reinstate their files.

They payed up!
 
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ArabianNights

Free Member
Dec 25, 2011
286
22
has no legal basis - when I worked in the City (London) we did have a case where we sent HMRC a demand for £1,000 as they lost clients records and asked us for documents so they could reinstate their files.

They payed up!
That’s interesting. I’m not sure they would pay up however, if I made that sort of demand, as they haven’t actually lost anything.
 
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ChrisCallaghan

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    Apr 10, 2018
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    Do you mean others people you know also stuck in this situation right now ?
    I'm afraid so.

    In particular at the moment it tends to take us (as IPs) forever to get VAT reclaims on cases where we are acting as liquidators. Even longer for tax clearance letters for solvent liquidation cases.

    All in all, everything is taking HMRC longer than it did pre-pandemic.
     
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    ArabianNights

    Free Member
    Dec 25, 2011
    286
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    Hi everyone - just an update. My 2 months worth of VAT repayments have now been sent to our company business bank account this morning! Along with compensation supplement. Finally! I still have an outstanding complaint with them. But that’s the news … we should be getting the monies within the next few days. More than 50+ days late. Good luck to all in this situation. I have had to call them daily to get their back sides moving, to the extent that they even got sick of me calling and the HMRC Technition advised me to go on holiday ?
     
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    Bridget1213

    Free Member
    Sep 3, 2022
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    Hi everyone - just an update. My 2 months worth of VAT repayments have now been sent to our company business bank account this morning! Along with compensation supplement. Finally! I still have an outstanding complaint with them. But that’s the news … we should be getting the monies within the next few days. More than 50+ days late. Good luck to all in this situation. I have had to call them daily to get their back sides moving, to the extent that they even got sick of me calling and the HMRC Technition advised me to go on holiday ?
    Congratulations! Thanks for letting us know!
     
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    Lisa Thomas

    Business Member
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    Apr 20, 2015
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    I'm afraid so.

    In particular at the moment it tends to take us (as IPs) forever to get VAT reclaims on cases where we are acting as liquidators. Even longer for tax clearance letters for solvent liquidation cases.

    All in all, everything is taking HMRC longer than it did pre-pandemic.
    Chris - apparently they have a backlog of 20,000 IP emails!
     
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