When do HMRC give interest on VAT refunds

When do HMRC give interest on VAT refunds

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We deregistered a company for VAT. As the company had provided no bank details HMRC issued a cheque but they sent it to themselves as this is the address that they put on their system once the company is deregistered. As the cheque didn't turn up I chased them. They sent the cheque to themselves again. I asked them to change the address over the phone. They said that they did but the cheque didn't turn up so I called them only to be told that the change didn't go through on their system and that I needed to write to them, which I did. This time they sent it to a bank account even though we've never given them details of one. Luckily it was returned to them. They now say that following today's call the cheque will be reissued to the correct address next week. If i'm lucky it will turn up in the next couple of weeks but I know that it can be a month. As the return was May I feel that we are due some interest. I know that if they issue the cheque late then they add interest but as their systems are so automated I think that it will say that they have tried to issue it and that it isn't their fault. I just can't imagine putting up with this from any other company. Could you imagine telling a supplier that you sent the payment to yourselves and that next week we will reissue it but you need to give us four weeks before you chase us as this is how long it takes to go through the system?

Apologies this is more of a Friday rant than a question and a little warning that if you don't supply bank details you might be in for an ordeal.

Replies (4)

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chips_at_mattersey
By Les Howard
15th Dec 2014 08:46

Interest due to taxpayer

If the repayment was on a Return (your post doesn't say either way), then a Repayment Supplement (s79) is due. If it is another adjustment (Voluntary Disclosure, etc.) then Statutory Interest (s78) is due.

Do put in a claim via email to HMRC. If you spend too much time on it, that will out-weigh the likely benefit!

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By tinyme77
15th Dec 2014 08:59

Thank you. That is a good solution.

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RLI
By lionofludesch
15th Dec 2014 10:04

Disgrace

Jeez - people make mistakes and I try to be tolerant of that but that saga is a disgrace.

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By shaun king
15th Dec 2014 11:44

Extra Statutory Payment

In addition to what Les has stated it is sometimes possible if you push hard enough that you can get an extra statutory payment from HMRC to cover the cost of professional fees as well as interest.

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