My small business submitted a repayment VAT return for period 09/17 (due to seasonality - other returns were payment ones). The repayment was withheld subject to inspection, when the visiting officer came weeks ago to look at all the records and invoices relating to the period.
He had questions about earlier periods, that I'm endeavouring to answer. He keeps coming back for yet more questions, and now is asking about 2015. However, not one of the questions is about 09/17. Despite me asking explicitly if he needs anything else to verify 09/17, he ignores my point and just asks further questions about earlier periods (eg give me a copy of your purchase day book for 03/16).
I'm getting him the answers, but does he have a right to hold on to 09/17 whilst he fishes around for problems in earlier periods? We're a small business, and cashflow is being badly affected by this. I know I can claim repayment supplement in due course, but I need the repayment now.
Any thoughts about whether the inspector can withold a repayments return because he's investigating other periods? I guess he could say he's holding onto 09/17 until he's satisfied we aren't fraudulent - but he's not even asking about 09/17!