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.