New HMRC online form launched to support VAT repayment claims
By Chris Campbell, Head of Tax (Tax Practice and Owner Managed Business Taxes)
12 December 2022
Chris Campbell outlines HMRC’s new online facility for providing information supporting VAT repayment claims
What is the new HMRC online form?
HMRC has introduced a new online form to enable businesses, or agents supporting them with VAT returns, to provide information or other supporting documentation electronically where HMRC has raised queries on a VAT repayment claim.
HMRC will often closely review the first repayment claim submitted for a business, although other scenarios where additional information is requested could include an unexpected repayment claim or where the claim amount is substantially different to what HMRC would expect based on previous claims.
Whereas such information would historically have been sent to HMRC via post, the online facility has the potential to speed up the time for VAT repayment claims to be processed. HMRC has advised that information submitted electronically should be processed within seven working days, after which point the claim should be approved or further information requested. Where the seven day turnaround has not been met, the business or its agent can then contact HMRC on the telephone number (noted on the letter requesting the information) to ask for an update.
Businesses using the service will need their Government Gateway user ID and password, with agents using an agent ID and password, either via their Agent Services Account or HMRC online services.
To use the online form, HMRC has advised that businesses or their agent will need the following information:
- the VAT registration number of the business
- the CFSS reference number from the letter sent (for example CFSS-1234567)
- details of the main business activities
- the date the business started trading
- the VAT rates that apply to the sales of the business
- details of any VAT schemes used by the business (for example the VAT Cash Accounting Scheme)
- the detailed VAT account for the business
- the five highest purchase invoices for the period of the claim
Depending on your circumstances, it is possible that HMRC may also ask for documentation such as bank statements, export sales invoices, import VAT documents, hire purchase or lease agreements, completion statements for the purchase of land or property, the planning reference and postcode of construction sites, and sales invoices where non-standard VAT rates were charged.
Let us know your views
The ICAS tax team would appreciate any feedback from Members on how the new VAT repayment claim form is working for them and their clients.
We welcome Members’ input to inform our work on consultations or other tax-related matters – email tax@icas.com to share your insights and feedback. ICAS responds to many tax calls for evidence and consultations, as well as producing tax policy papers and reports. We also regularly attend meetings with HMRC at which service levels, delays and other issues are discussed, and we raise problems being encountered by Members.