Ian Brown (RSM UK) answers a query on whether and when it is correct for HMRC to withhold part-payment of a repayment VAT return.
Question
A business routinely submits monthly VAT returns. HMRC has challenged the recoverability of VAT incurred on a certain type of business expense making up an element of the whole repayment due on that and subsequent VAT returns. In turn the officer has referred a technical question on the recoverability of VAT incurred on these expenses to HMRC’s policy team. So far six months have elapsed with no response from the policy team. Moreover the officer has so far refused to pay any amount of the repayment in question pending HMRC’s policy decision. Is this correct and what recourse does the business have with HMRC to resolve this?
Answer
For a business that...
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Ian Brown (RSM UK) answers a query on whether and when it is correct for HMRC to withhold part-payment of a repayment VAT return.
Question
A business routinely submits monthly VAT returns. HMRC has challenged the recoverability of VAT incurred on a certain type of business expense making up an element of the whole repayment due on that and subsequent VAT returns. In turn the officer has referred a technical question on the recoverability of VAT incurred on these expenses to HMRC’s policy team. So far six months have elapsed with no response from the policy team. Moreover the officer has so far refused to pay any amount of the repayment in question pending HMRC’s policy decision. Is this correct and what recourse does the business have with HMRC to resolve this?
Answer
For a business that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
