What to do when your VAT refund is stuck with HMRC for months

There are several reasons why your VAT refund might be stuck in HMRC’s system for months. These include:

Compliance checks: HMRC routinely conducts compliance checks to verify the accuracy of VAT returns. If your return has been selected for review, this could add significant delays to your refund processing. This process can take weeks or months depending on the complexity of the check.

Errors in your VAT return: Simple mistakes like incorrect figures, missing information, or miscalculations can cause HMRC to pause the processing of your VAT refund. Even seemingly minor errors can flag your return for further scrutiny.

Large or unusual refund amounts: If your VAT refund is substantially larger than usual, HMRC may flag it for additional investigation. This is common for businesses that have made significant purchases or have experienced seasonal changes, which result in higher-than-normal VAT reclaim amounts.

If your VAT refund has been delayed for months, here are some steps you can take to resolve the situation:

Contact HMRC for an update: The first thing you should do is reach out to HMRC to check the status of your refund. You can call the VAT helpline or send a written inquiry. Be prepared to provide your VAT registration number and any relevant details about your return. Keep in mind that response times from HMRC can vary, so persistence is key.

Double-check your VAT return: Review your VAT return for any mistakes or missing information that might be holding up the process. If you spot an error, you can submit a correction through the HMRC online portal. This might help expedite the processing of your refund.

Gather supporting documentation: If HMRC requests additional documentation to verify your refund, provide it as quickly and thoroughly as possible. This might include invoices, receipts, or bank statements that support your VAT reclaim.

Seek professional advice: If your refund is still stuck after following up with HMRC and reviewing your return, it might be time to consult with an accountant or VAT specialist. They can help you navigate the complexities of the refund process and identify any potential issues that need to be addressed.

While waiting for months on a VAT refund from HMRC can be incredibly frustrating, there is a faster solution. With InstantVAT, you can access your VAT refund as soon as HMRC have verified your return—no more waiting for HMRC’s payment processing times.

Here’s how InstantVAT can help your business:

Improve cash flow: Instead of waiting months for HMRC to release your funds, InstantVAT gives you access to your refund as soon as it’s available, ensuring your business stays financially stable and operational.

Peace of mind: With InstantVAT, you’ll have a reliable partner who will advocate for you in the event of HMRC delays. You can rest easy knowing that someone is fighting your corner and ensuring you receive your refund as fast as possible.

Focus on growth: Delayed VAT refunds can hold your business back, but InstantVAT allows you to focus on scaling your operations and pursuing new opportunities.

Having your VAT refund stuck with HMRC for months is a frustrating situation no business wants to face. However, by staying proactive—contacting HMRC, checking your return for errors, and seeking professional advice—you can work towards resolving the delay.

For those who want a faster, more reliable option, InstantVAT offers a solution. Instead of waiting for HMRC’s lengthy processing times, InstantVAT provides access to your refund as soon as it’s available, helping your business maintain smooth operations and avoid cash flow issues. Take control of your VAT refunds today and let InstantVAT help you keep your business moving forward.

For more information, contact us and learn how InstantVAT can transform the way your business handles VAT refunds.