Delays with processing VAT error corrections

In Neil Warren’s article ‘Extra time needed’ (Taxation 20 April 2023) the department confirmed its intention to restore a turnaround time of 40 working days within one month helped by a doubling of staffing resources in the processing team. However Taxation has since learned of a repayment claim submitted online in April that remained unpaid until the end of August. An HMRC spokesperson has apologised for the delay and confirmed it had been completed.

VAT errors made on past returns must be corrected by a registered entity for the previous four years. If the net amount over or underpaid is less than £10 000 or between £10 000 and £50 000 where the error is also less than 1% of the box 6 outputs figure then it can be included on the next return rather than being separately...