VAT return deadline if a repayment

[Smallbusinessman]

If one is making a payment electronically, an extra 7 days (in addition to the one calendar month) is allowed for receipt of the return and the payment.

However, it was suggested to me that if there is a repayment situation (Input Tax > Output Tax), then the extra 7 days does not apply, i.e. the return is due within one calendar month after the VAT return period. If this is indeed the case and if a repayment VAT return is submitted after the deadline, what happens to the amount of the repayment? Is it ever paid to the VAT registered entity?

All replies will be appreciated, thank you.

 

[David Griffiths]

I've also seen that suggested, and by a well regarded speaker on a training course as well. However, I've never seen it applied in practice.

It might be that, now that online filing is pretty well compulsory for everybody, HMRC simply set the overdue flag for all returns at one month plus seven days.

If a repayment return is filed late, it doesn't affect the repayment at all and it should be made in the normal way.

 

[lesvatadvice]

The 1 month deadline (plus additional days) still applies for a Repayment Return.
If you submit late, then you will trigger a default under the Default Surcharge system. This may then lead to a surcharge if you submit or pay a later Return late.
If the Repayment Return is submitted late, HMRC will not reduce the amount. And, it will be paid to the VAT registered entity (did you mean to ask something different?).

 

[MrAnchovy]

If one is making a payment electronically, an extra 7 days (in addition to the one calendar month) is allowed for receipt of the return and the payment.

However, it was suggested to me that if there is a repayment situation (Input Tax > Output Tax), then the extra 7 days does not apply, i.e. the return is due within one calendar month after the VAT return period. If this is indeed the case and if a repayment VAT return is submitted after the deadline, what happens to the amount of the repayment? Is it ever paid to the VAT registered entity?

All replies will be appreciated, thank you.

I can understand the confusion, this used to be the case when VAT returns were usually made on paper. This is the true situation (except for Annual Accounting or payments on account) (hope the layout works):

|...............................|..Return submitted online..|..Return submitted on paper..|
|-------------------------------|---------------------------|-----------------------------|
|..Payment made electronically..|..7 extra days.............|..7 extra days...............|
|..Repayment due................|..7 extra days.............|..Normal due date............|
|..Payment made by cheque.......|..Not allowed..............|..Normal due date............|

 

[Smallbusinessman]

Thanks are due to Les Howard and MrAnchovy for the detailed replies above. These are very helpful. I will keep a record of these for future reference.

 

[Smallbusinessman]

Thanks are also due to MrAnchovy for going to the trouble of laying this out in tabular format. This makes it crystal clear.