HMRC has announced a useful new tool for speeding up repayment payments.
When a business submits a repayment return (when input tax exceeds output tax) HMRC may carry out a “pre-cred” (pre-credibility check) inspection or queries. This is to ensure that a claim is valid before money is released.
If not subject to a visit, a business is likely to be asked for information to support a claim. Such requests are more common if a business normally submits payment returns or it is a first return. The requested information is usually in the form of copy purchase invoices or import documentation.
Prior to the
changes, HMRC sent a letter by snail mail and the information would also be returned
by post. This was often subject to delays and “misunderstandings”.
From this month,
HMRC has launched an online form so
that a claimant, or an agent, can upload documents to support the claim via the
Government
Gateway. It is hoped that this will result in businesses receiving a repayment
in shorter order.
HMRC require:
- the VAT
registration number
- the CFSS
reference number from the HMRC letter
- details
of the main business activities
- the date the
business began
- the VAT
rates that apply to sales
- details
of any VAT
schemes
- the detailed
VAT account
- the five
highest value purchase invoices, and
- any
additional specific information requested by HMRC
Depending on circumstances, HMRC may also need:
- bank
statements
- export
sales invoices or supporting documents
- import
VAT documents
- hire
purchase or lease agreements
- completion
statements and proof of transfer of funds for the purchase of land or property
- the
planning reference and postcode of construction
- sales
invoices where non-standard VAT rates were charged
HMRC aim to look at this information within seven working days and will contact the claimant or agent when a decision is made, or if any further information is required.
Let us hope that speeds up the process.