My client submitted a VAT return with a negative box 4 figure (first time I have seen this in 17 years of practice) because of a purchase refund. His box 5 was positive £1437.26 and he paid it as normal. But the following narrative has appeared in the gateway account:
Refund payment from HMRC £1437.26
As you requested a refund on an overpayment you made.
We await to see if a refund will be made. His VAT account is zero (as it should be). Has anyone else come across this?