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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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 .....
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 ?
Even earlier for those under MTD. Ours for the quarter to 31/05 is already showing.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.
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.
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!