HMRC is taking an unusually long time to refund overpaid tax, the Financial Times reports.
Experts say the delays are caused by squeezed HMRC resources and heightened credibility checks undertaken when repayments are made, among other factors.
Accountants told the FT that delays are particularly prevalent in the case of large sums, with some repayments even taking more than a year to be resolved.
Given the low interest rate paid by HMRC on overpaid taxes (currently 0.5%) one expert told the paper that “it’s not worth anyone making overpayments to HMRC.”
The delays risk causing serious cash flow issues, especially as businesses are looking to rebound following the Covid-related downturn.
Avoiding VAT overpayments
Managing corporate tax is obviously highly complex. Some errors and inefficiencies may be inevitable.
Fortunately, the most advanced VAT compliance technology makes it much simpler to optimise compliance and ensure you are always fully compliant, while minimising the possibility of overpaying. Importantly, automation eliminates potentially costly human error.
Advanced VAT recovery
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VAT IT’s technology-driven VAT recovery solutions ensure that you maximise your VAT recovery while ensuring all claims are completely accurate and in conformance with all applicable regulations.
Having a VAT recovery specialist in your corner is valuable at the best of times. Faced with delays and cash flow issues, the support of a VAT specialist is hard to overestimate.
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