As a small business owner, you need to keep on top of your VAT returns and understand how repayments of VAT work.
If you have charged your customers less VAT than you paid for your goods, then HM Revenue & Customs (HMRC) will repay you the difference.
It pays to know how the system works so that you can understand your rights as a business owner and make sure you get the refunds you’re due.
How do repayments work?
In order for businesses to claim back any overpaid VAT, they must first submit a VAT Return form.
This form is used by HMRC to calculate how much VAT your business owes or is owed.
It must be completed quarterly and sent in with all relevant information before the deadline date.
Once submitted, the return will be assessed by HMRC which will determine whether there is an amount due for repayment.
How long will it take to receive my repayment?
Repayments should be made within 30 days of HMRC receiving your VAT return.
If they require additional information from you then this could delay matters further, but as long as you have provided all necessary documentation when submitting your return then this shouldn’t be an issue.
Contact HMRC if you do not hear back within 30 days and you know you are owed a repayment.
For advice on VAT repayments, contact us.
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