Generous repayment supplement??

JodieR

I filed a VAT return for a client at the very beginning of August (for the quarter to 31 July) and as he'd bought large capital items he was due a refund of £58k. I did fax copies of the large invoices to HMRC at the time but it still took them about 6 weeks to process the refund, however now that it's through I see they've added on a repayment supplement of £2900! Not that I'm complaining but is this not excessive?? and if it's an error do you think they'll ask for it back?

Monsoon

It's 5%... If they sat on it for just 6 weeks that's quite high.

I don't know the answer...

andrewtdk

I remeber reading this and was supprised how generous it was to give 5% if its not paid within 30 days, i think theres even a minimum repayment supplement for around £50 aswell if the 5% works out lower than this

Monsoon

Let me taint the silver lining by advising the interest will be taxable

JodieR

So you really get 5% of the whole amount rather than a pro-rata of 5% pa? client will be happy, he's convinced himself they're going to ask for it back!