Repayment Supplements

If HMRC fail to issue an instruction for repayment within a 30-day period, a repayment supplement may be added to the payment due. M Ltd submitted a claim for such a payment on the basis that the repayment owed to the business was not processed within a reasonable time frame.

 

The 30-day period in which HMRC have to issue payment began on the day HMRC received the businesses claim. Within 2 weeks, HMRC sent M Ltd a request for information, therefore stopping the clock on the repayment. The Appellant contested, however, that the information requested was not information which the business could be realistically expected to hold.

 

Upon receipt of alternative information which was agreed between the two parties, the 30-day period in which HMRC have to issue repayments was continued and payment was deemed to have been made on the date on which instructed by HMRC as opposed to the date of receipt.  HMRC were however beyond the 30-day period set out in VAT legislation and M Ltd were therefore due a repayment supplement.

 

If your business is due a repayment from HMRC that is not processed in the time limits specified, please contact one of our consultants to see if you are entitled to receive further payment.

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