REPAYMENT VAT RETURNS

We understand that HMRC have changed the way that they will enquire into repayment VAT returns.

Previously this was done by checking claims on HMRC's computer against certain parameters, and depending on the history, a visit may have been scheduled to check the return. HMRC now plan to make written enquiries into the reasons for the repayment. This will take the form of a standard letter from the "post credibility team", which will include a request to the business to check the details, provide an explanation as to why the repayment has arisen and to produce evidence to support the claim.

This is another example of the way in which HMRC may be attempting to reduce their costs.