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VAT refund if only output tax on first claim

VAT refund if only output tax on first claim

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Quickie. I've not come across this from memory. If a startup registers for VAT but has only input tax on it's first claim will the HMRC pay a refund or expect to roll over the balance to the next claim? Thanks


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12th Feb 2016 18:08


They'll normally pay the refund. Depending on the size, they might ask some questions first (e.g. if it's on a lease premium or substantial refurb works).

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13th Feb 2016 08:57

And it can also
Trigger a visit by an inspector which has happened to 2 of my clients, although the refund went ahead they visited the offices and wanted to see all documentation.

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13th Feb 2016 16:20

Inspection is likely

I had a new client who only claimed a refund for his first VAT return, in Nov 2015. I warned him we would probably get a VAT inspection and we did.

We were able to do the whole thing by email, as all his supplier VAT invoices had been uploaded to Xero prior to this. I just asked client to write something about company's future intentions.

Within a week, HMRC passed the VAT return and repaid the company in full a few weeks later.

Make sure client passes you both page 1 and 2 of the letter HMRC send him about the inspection, as the relevant email address is buried somewhere near the bottom of page 2.

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By sigcima
13th Feb 2016 19:07

Thanks for the comments.

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