Dealing with a delayed VAT refund can be incredibly frustrating, especially when your business relies on that cash to manage expenses or reinvest in operations. If you’re currently facing this challenge, you’re not alone. Many UK businesses experience delays in receiving their VAT refunds from HMRC for a variety of reasons. In this guide, we’ll explore common causes of delays, provide actionable steps you can take to resolve the issue, and introduce InstantVAT as a faster solution to get your money when you need it most.
Common reasons for delayed VAT refunds
HMRC usually processes VAT refunds within 10 to 15 working days after receiving your VAT return, but delays can occur for a number of reasons:
1. Additional compliance checks: HMRC may flag your return for further review if it involves unusually large amounts or irregular claims, requiring additional time to process.
2. Errors or discrepancies in your return: Mistakes in your VAT return can slow down the process, as HMRC may need further information to clarify the figures submitted.
3. Seasonal backlogs: At certain times of the year, particularly around major tax deadlines, HMRC may experience a backlog that delays the processing of refunds.
4. Incorrect bank details: Providing incorrect or outdated bank details can delay the transfer of funds once your refund has been approved.
Steps to take if your VAT refund is delayed
If your VAT refund has been delayed beyond the standard timeframe, it’s important to take action to resolve the issue. Here’s what you can do:
1. Check your VAT refund status
Your first step should be to log in to your HMRC VAT online account to check the status of your refund. This will give you an indication of whether the refund has been processed or is still under review. If there’s no clear update, it may be time to take further steps.
2. Contact HMRC for an update
If the delay is longer than expected and you haven’t received any communication from HMRC, it’s time to reach out directly. You can contact the VAT Helpline at 0300 200 3700. Be sure to have your VAT registration number, unique taxpayer reference (UTR), and details of the relevant VAT return ready when you call.
3. Ensure there are no errors in your submission
Mistakes in your VAT return, such as misreported figures or incorrect bank details, can result in delays. Review your return to ensure that all the information provided is accurate and that your banking details are up to date. If there’s an issue, you may need to submit a correction, which could restart the processing timeline.
4. Respond promptly to HMRC requests
In some cases, HMRC may reach out for additional documentation or clarification regarding your VAT return. If this happens, make sure to respond promptly and provide all the information they request. Delayed responses will only slow down the processing of your refund further.
5. Follow up regularly
If HMRC informs you that your refund is under review, it’s important to follow up regularly. Don’t hesitate to check in for updates if you haven’t received your refund within the usual timeframe. Persistence can help keep your case moving forward.
InstantVAT: a faster solution to VAT refund delays
For businesses that cannot afford to wait for weeks or months for their VAT refunds, InstantVAT provides a reliable alternative. With InstantVAT, you can receive your refund within 24 hours after HMRC verifies your claim, bypassing the delays that often plague the traditional process.
Here’s how InstantVAT can help:
•Fast-tracked refunds: Instead of waiting for HMRC’s payment processing, InstantVAT ensures that you receive your VAT refund as soon as it’s verified – often within 24 hours.
•Expert support: Our team of VAT specialists, including former HMRC officers, will handle the process on your behalf, ensuring that any delays or compliance checks are dealt with efficiently.
•Less stress: With InstantVAT, you won’t need to waste time chasing HMRC for updates. We provide real-time notifications on the status of your refund, giving you peace of mind.
•Advocacy during HMRC delays: If HMRC is delaying your refund, our experts will intervene to resolve the issue and expedite the release of your funds.
If your business is struggling with a delayed VAT refund, there are several steps you can take to get the process back on track. Start by checking your refund status, contacting HMRC, and ensuring your submission is accurate. Responding promptly to HMRC’s requests and following up regularly can also help speed things up.
However, for businesses that need their VAT refunds quickly, InstantVAT offers a solution that eliminates long waiting times. By choosing InstantVAT, you can access your refund within 24 hours after HMRC verification, giving you the cash flow boost you need without the stress of delays.
If you’re looking for help with a delayed VAT refund, consider using InstantVAT to take control of the process and receive your money faster.