vat reclaim from 31/5/21 not received yet ?

vat reclaim being held?

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Im hoping you probably all have better experience of this....

when the covid hit last year we deferred the vat payment for qtr ending Feb 2020 -  we then signed up to the scheme to repay by installments, all running smoothly so far. Moving forwards onto this year (due to the cis reverse charge kicking in) we find ourselves in a vat reclaim, for qtr end 31/5/21, for the first time.

we have recently realised that this reclaim has never been paid to us - the hmrc online account confirms all details received and bank a/c all correct.

Would the reclaim be withheld due to installment plan still ongoing?  (incidentally the amout remaining on the repay plan is almost the same as the reclaim)

We're due to run our vat qtr end for 31/8/21 and initial views show another reclaim for quite a large amount - would this be held as well?

Sorry for the trouble, but Ive tried the hmrc online chat, what a joke, long wait...then whilst im typing the message....its comes back to say "no available assistants to help"

Replies (5)

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Danny Kent
By Viciuno
15th Sep 2021 16:24

Trying calling them to see where it has been allocated or why it has been held up - agree the webchat is a joke.

Call as soon as the lines open at 8am tomorrow - usually don't have to wait too long then.

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By codling
15th Sep 2021 16:47

If this is a case where there are usually payments to make and a repayment bucks the trend then make sure that there has not been a change of bank account in the intervening period that has never been notified to HMC&E. I have seen cases where HMC&E have tried to make a repayment but been unable to for this very reason as they have no up to date bank details.
That said, there has been no attempt by HMC&E to write to advise that repayment cannot be made by bank payment!

Thanks (1)
By HClarke
15th Sep 2021 18:22

I've had this for a client - according to HMRC, they will not pay out on a repayment return if there is any outstanding VAT, irrespective of whether there is a payment plan in place.

So they had applied the repayment to the outstanding liability, and told us that the reduction would be automatically applied to the payment plan - meaning there won't be any (what would have been) final payment, and the penultimate one would be reduced down to the balance as at that date.

Would have been nice if they had let us know, rather than having to call them and sit on the phone for 45 minutes first! Online, it showed as having been paid, but apparently in their view it has been paid!

Thanks (1)
By ohwhatnow
16th Sep 2021 08:30

There’s definitely no change in the bank details.
On the website it stipulates that you’re to only call in an emergency….
Gawd knows what a vat “emergency” would be, you’ve really got to laugh at Hmrc, if not I’d probably cry.
I think I had seen awhile back that they wouldn’t pay out on any reclaims if there were outstanding payments due, even if there’s an agreed repay plan.
Do you think it would benefit us to pay off the remaining deferred vat balance in order to clear their payment to us - the next vat return will again be a reclaim for quite a large value?

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Replying to ohwhatnow:
By Hugo Fair
16th Sep 2021 10:17

I guess that depends on when you pay off the balance and, more importantly, how quickly HMRC process that payment through to your account ... they have their own opaque processes, so you can't make assumptions as with a bank account.

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