Refunding your VAT Payments

If you are a taxpayer and you wanted to defer your VAT payments, but you failed to cancel your Direct Debits in time you can claim a refund. HMRC outlines how a claim can be made to ICAEW's Tax Faculty.

HMRC has confirmed that where taxpayers wanted to defer VAT payments due between 20 March 2020 and 30 June 2020, but did not manage to cancel their direct debit in time they can claim a refund.

The quickest way for taxpayers to do so, according to HMRC, is to submit a Direct Debit Indemnity Claim to their bank, ensuring that they state they want to claim a refund under the Direct Debit Indemnity Scheme (DDI). HMRC confirms that there is no time limit in making this request.

If the taxpayer wants a repayment from HMRC, rather than contacting the bank, they must ensure that their bank details are updated using the online service.

HMRC reminds taxpayers that due to COVID-19 restrictions, Payable Orders are not being issued and that it may take up to 21 days for the refund to be received if the Direct Debit Indemnity Claim process is not used.

HMRC will provide further guidance on the payment of the deferred amount at the end of the deferral period. Businesses will also need to make arrangements to pay VAT falling due from 1 July 2020 to 31 March 2021 (ie, amounts that are not deferred).

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