HMRC Won’t Grant A Refund Of VAT Due To You Or Your Business?

Why Would HMRC Reject A Claim For Input VAT?

When businesses file their VAT return setting out the levels of input and output tax incurred for that quarter, HMRC can disallow the VAT claimed. This can include a refusal to reimburse excess VAT paid, or it could be to disallow some or all of the Input Tax used to offset against that already paid putting the business in a position where they need to pay sums to HMRC that they were not expecting to.

What Should I Do If A VAT Input Claim Is Refused?

The Most Common Reason For HMRC Refusing VAT Claims For Input Tax Are:

Incorrect Documents

VAT invoices are required to comply with section 14 of the Value Added Tax Regulations 1995. This states that all VAT invoices should state certain information. Where VAT invoices do not contain all of the required information, HMRC may state that they are not valid VAT invoices and may reject the paperwork and any VAT claim made as a result.

Questions Over The Validity Of Documents

Where HMRC have questions over the validity of documents, they may refuse to accept a claim and disallow any input tax in your VAT return. HMRC could have concerns with documents your business have put together, or it could be your supplier documents they are concerned about. HMRC should set out why any VAT claim has been disallowed, however it is important to seek legal advice as soon as possible as concerns about use of invalid documents could become very serious very quickly. This is especially important in relation to any instances of Missing Trader Intra-Community Fraud Or ‘MTIC‘.

Questions Over The VAT Return Itself

HMRC may also have queries over the VAT return itself. It may be that the document contains errors which will need to be corrected before any VAT claim can be dealt with. If there are any issues with your VAT return you should discuss this will your accountant as they may be able to resolve the matter relatively quickly for you.

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Altion Law are specialists at advising and representing parties who have received VAT assessments and wrongdoing penalties from HMRC. If you would like to have a confidential discussion with a member of our team, please either make an Online Enquiry or call us directly on 01908 414990 and we will be pleased to help you.

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