VAT return showing payment due to trader
Where a return shows that input tax for the period exceeds output tax (if any), the excess will be repaid1. This general principle is subject to a number of qualifications.
Tax less than £1
Where the tax repayable at the end of a prescribed accounting period is less than £1, it is treated as nil2.
VAT return(s) outstanding
HMRC is empowered to withhold payment if a VAT return for a prior period is outstanding3.
Failure to produce evidence
HMRC may require a person to produce evidence in relation to input tax (for example, VAT invoices to support the input tax claimed) as a condition of repaying the amount claimed4, and may thus withhold repayment if the evidence is not produced.
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Web page updated on 21 Mar 2025 09:45