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When will my client receive a VAT refund?

When will my client receive a VAT refund? Anyone had any repayments recently? Delay due to Covid?

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I have a client who was registered for VAT effective from 01/02/2020, the first return was submitted by myself on Sunday (22/03/2020), the first period running 01/02/2020 - 31/03/2020. The returns going forward will be monthly as the client doesn't make taxable supplies that he can charge output VAT on, therefore we'll just be claiming small amounts of input VAT going forward, if anything at all. The problem is the client has had a large amount of set up costs which I have included on this first return, so I suppose my questions are:

1) Have I submitted the return too early? My client will not be trading until the end of the month due to lack of work at the minute for obvious reasons!

2) When is the earliest my client could expect the repayment to be received into his account? 

The amount of the refund we're expecting is £124.

Thank you for your help in advance!

Replies (11)

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RLI
By lionofludesch
27th Mar 2020 12:37

You're new here, aren't you ?

How did you submit a return for the period ended 31st March on 22nd March ?

Personally, I would expect it to be rejected - but who knows ?

Strangely, it's something I've never done .....

Thanks (3)
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By CGold76
27th Mar 2020 13:03

Yes, I am new. How welcoming!

I submitted the return online - it was showing as available to complete, I'd assumed this was because we registered the business effective of 1st of Feb - if I shouldn't have submitted the return yet, why was it showing on HMRC as ready to complete?

I appreciate that submitting a return early isn't normal practice but we're not exactly in normal times at the moment are we. I've submitted early as the VAT was not going to be affected from the 22nd.

Thanks (0)
Replying to CGold76:
RLI
By lionofludesch
27th Mar 2020 13:10

CGold76 wrote:

Yes, I am new. How welcoming!

I submitted the return online - it was showing as available to complete, I'd assumed this was because we registered the business effective of 1st of Feb - if I shouldn't have submitted the return yet, why was it showing on HMRC as ready to complete?

I appreciate that submitting a return early isn't normal practice but we're not exactly in normal times at the moment are we. I've submitted early as the VAT was not going to be affected from the 22nd.

Returns appear on the system about a month before the due date. As you're in practice, I'm surprised you're unaware of this.

How do you know there won't be any more transactions ?

Given the distractions, you may well get your money. Or some automated block may kick in and, given the distractions, might be months before someone gets round to authorising it and you get your money. Who knows ?

Thanks (1)
Replying to lionofludesch:
avatar
By CGold76
27th Mar 2020 13:34

In case you've not noticed buddy I've come to this website for help, for guidance from someone who is better advised on VAT than me - considering you keep asking "who knows?", is this you or are you just replying through boredom? I'm in practice, however I've not done a VAT return in years, I work mainly in personal tax.

Thanks for your answer.

Are you always this condescending?

Who knows?

lionofludesch wrote:

CGold76 wrote:

Yes, I am new. How welcoming!

I submitted the return online - it was showing as available to complete, I'd assumed this was because we registered the business effective of 1st of Feb - if I shouldn't have submitted the return yet, why was it showing on HMRC as ready to complete?

I appreciate that submitting a return early isn't normal practice but we're not exactly in normal times at the moment are we. I've submitted early as the VAT was not going to be affected from the 22nd.

Returns appear on the system about a month before the due date. As you're in practice, I'm surprised you're unaware of this.

How do you know there won't be any more transactions ?

Given the distractions, you may well get your money. Or some automated block may kick in and, given the distractions, might be months before someone gets round to authorising it and you get your money. Who knows ?

Thanks (0)
Replying to lionofludesch:
avatar
By CGold76
27th Mar 2020 13:46

In any case - your point about the returns showing online a month before the due date, are we at 7th of April yet? 22/03 is a couple of weeks off 07/04, with the return being due 07/05/2020.

Bizarre how you think it's acceptable to have a holier than thou attitude and then not make any sense anyway?

lionofludesch wrote:

CGold76 wrote:

Yes, I am new. How welcoming!

I submitted the return online - it was showing as available to complete, I'd assumed this was because we registered the business effective of 1st of Feb - if I shouldn't have submitted the return yet, why was it showing on HMRC as ready to complete?

I appreciate that submitting a return early isn't normal practice but we're not exactly in normal times at the moment are we. I've submitted early as the VAT was not going to be affected from the 22nd.

Returns appear on the system about a month before the due date. As you're in practice, I'm surprised you're unaware of this.

How do you know there won't be any more transactions ?

Given the distractions, you may well get your money. Or some automated block may kick in and, given the distractions, might be months before someone gets round to authorising it and you get your money. Who knows ?

Thanks (0)
Replying to lionofludesch:
avatar
By Wanderer
27th Mar 2020 14:59

lionofludesch wrote:

Returns appear on the system about a month before the due date. As you're in practice, I'm surprised you're unaware of this.

Even earlier for those under MTD. Ours for the quarter to 31/05 is already showing.
Thanks (1)
RLI
By lionofludesch
27th Mar 2020 14:18

Let us know how you get on.

Thanks (1)
By CazzyT
27th Mar 2020 14:49

Often a repayment on a first return is held up and questioned. If the repayment is approved we are being told its up to 21 weeks for it to processed at the moment.

Thanks (1)
Replying to CazzyT:
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By CGold76
27th Mar 2020 16:19

21 Weeks? Ouch! Ok no probs, thanks guys.

Thanks (0)
chips_at_mattersey
By Les Howard
27th Mar 2020 16:46

I understand HMRC do not process repayments until the day after the final day of the Return, ie: 1 April. Of course, as my esteemed colleagues have indicated, HMRC may select it for a pre-repayment verification.
I would hope, for £124, you will get the repayment by mid April. But, I cannot promise anything!

Thanks (1)
Replying to leshoward:
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By CGold76
27th Mar 2020 19:27

Ahh thank you, that would make sense that they don't process them until after the final date of the return - I just thought perhaps given the circumstances they'd accept the return earlier than 31/03, my client has no work for the foreseeable future however as was pointed out earlier we can't be 100% certain that there will be no further transactions before the end of March.

We were half expecting that HMRC would query a first return repayment, which is fair enough, we've got the receipts etc to back it up.

Thank all of you for your help, really appreciate it guys.

Thanks (0)
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