First time VAT and refund situation

First time VAT and refund situation

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Hello

Client has substantial vat refund on first vat quarter due to franchise purchase.

I'm sure I read somewhere, unless i'm mistaken, HMRC require sight of invoices if this is the case or something, else they will not pay the refund.

Is this the case and if so where can I find the guidance?

Many thanks

Replies (2)

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Glenn Martin
By Glenn Martin
02nd May 2013 11:48

Most of the Time they do.

If you are due a refund on first return HMRC will not repay unless they are happy that it is correct.

Normally what I would do is write to local VAT office with a copy of the franchise invoice explaining why the refund has happened. This is also gives some comfort that an accountant has looked at it and not just "joe Bloggs" having a go at doing his first VAT.

This tends to speed the process up as when the return is flagged for for further checks the information is already on file to deal with it.

The other option is to wait and see if it gets queried but this could delay your clients refund.

They dont tend to come and fully check the return now but usually just ask for the "big invoices" that have produced the refund.

Thanks (1)
Universe
By SteveOH
02nd May 2013 13:28

They will contact you

When I had to register for Vat a few months ago, I also had a repayment claim. They contacted me about 3 weeks later requesting sight of the Vat account plus input invoices making up 50% (I think it was) of the input claim.

The great thing was that they were prepared to deal with their request by email and were also prepared to accept PDFs of the relevant invoices. Very efficient and the bank transfer arrived no more than a week later.

Thanks (1)