Vat Repayment Delay ''Further Checks''

Need your opinions based on your experience guys pls

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Hello everyone,

I hope you're all well. I'm reaching out to gather insights from those who submitted their VAT refund reclaims in the first week of April. As of now, the status on our HMRC account for multiple reclaims across different limited companies continues to display as "further checks." Since these submissions began on the 2nd of April, each one, irrespective of whether it is a company's first or third reclaim, shows the same status.

Is anyone else experiencing similar delays? Could this be related to the transition into the new fiscal year? Any shared experiences or insights would be greatly appreciated as we try to understand if this is a common issue or something specific to our submissions.

Thank you for your time and help!

Replies (6)

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By FactChecker
13th Apr 2024 16:28

There's a long tradition within the Treasury ...

You're probably too young to remember the Tory chancellor, Reginald Maudling ... who bounced down the steps of the Treasury in 1964 to tell Jim Callaghan: “Sorry to leave it in such a mess, old co ck.”

But more likely to remember the note left by the departing Labour chief secretary to the Treasury, Liam Byrne, in the in-tray for his Tory replacement: "I’m afraid there is no money."

I suspect that Jim Harra is currently crafting his version ...

Thanks (4)
By Jason Croke
13th Apr 2024 16:59

If it's a reclaim, likely subject to further checks by HMRC. They do seem to be checking refunds a lot more than they used to (almost all my clients who have filed refund returns this year so far have had them queried), more so if the values are high or if regularly receiving refunds.

So you'll need to wait until HMRC contacts you (if they are going to do a proper review of the refund), else HMRC have up to 30 days to process the refund.

It possibly doesn't help that you have got "multiple reclaims across multiple companies" - maybe piqued HMRC interest.

Thanks (3)
Replying to Jason Croke:
By FactChecker
13th Apr 2024 17:27

As usual a much more serious and useful answer than my sardonic thoughts ... which were however a reaction to having also observed that "They do seem to be checking refunds a lot more than they used to"!

Thanks (4)
the sea otter
By memyself-eye
13th Apr 2024 18:46

My son is about to submit a repayment claim as he works in the festival catering business - no income Jan to March but a new catering unit purchased. No doubt there will be 'issues' with a £23k VAT refund....

Thanks (1)
Replying to memyself-eye:
By Jason Croke
13th Apr 2024 18:54


Think about how it looks, no sales in the qtr but spent £100k on can a business with Nil sales afford £100k of costs?

Loads of logical answers, bank loan, Directors loan, family, just got a £1m contract that starts next quarter, new business start up costs,seasonal variances, etc...but to HMRC it will look odd because of the lack of income vs significant costs.

Thanks (0)
Replying to memyself-eye:
By FactChecker
13th Apr 2024 20:30

Totally off-piste with regard to the topic ... but a 'mad thought' just floated into my head apropos your son's business opportunities.

I'll start with the caveat that I'm waaay out of touch with the current music scene, but back in the day (ok '67-'69) I attended every open-air gig going. Granted the early ones were all free but, as well as a variety of great bands, they shared one common feature - susceptibility to the British weather. And as the first one-dayers grew into 3-5 day events, that started to matter (for a bunch of obvious reasons) and they became a 'summer' seasonal activity.
BUT a 'festival' doesn't have to have crowds in tens if not thousands of thousands, a few hundred (under a thousand) could be easily rustled up at many sites across the UK ... especially if they're giving a platform to new bands (whose opportunity for live gigging is getting harder in the digital download age).
And if it was out of season then no competition ... so all you need is a farmer with a couple of large empty barns (one for music and one for sleeping-bags) - and hey presto a dry indoor mini-festival with ground-breaking new acts that quickly becomes the 'in' thing to go to for the young at heart.

Of course, being cold outside might mean they're more prepared than usual to dig deep into their wallets for soup, hotdogs or whatever your son sells - and he might even develop a side-line in space heaters or ...

Thanks (2)