- Understanding VAT Refund Checks: Businesses often face “pre-credit” checks from HMRC when claiming VAT refunds, especially if the claim is unusual or from a new business. These checks aim to prevent fraud but can lead to delays or refusals if not handled properly.
- Challenges and Solutions: Refund checks can become complex, requiring businesses to provide substantial evidence of intended taxable supplies. It’s crucial to address HMRC’s concerns promptly and thoroughly, using documentation like board minutes and business plans to support claims.
- Preparation and Prevention: To avoid complications, businesses should prepare evidence in advance of submitting VAT refund claims. This proactive approach can prevent issues and streamline the refund process, reducing the need for extensive follow-up or appeals.
Source CJMTax
