Generous repayment supplement??
JodieR
Registered Posts: 1,002 Beyond epic contributor 🧙♂️
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?
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Comments
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It's 5%... If they sat on it for just 6 weeks that's quite high.
I don't know the answer...0 -
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 this0
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Let me taint the silver lining by advising the interest will be taxable0
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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!0
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