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      What is HMRCs standard process to pay my VAT refund?

      After you submit your VAT return, HMRC follows a standard process to verify and pay your VAT refund. The process includes the following stages.

      1. Verification of your submission amount: HMRC verifies that the return you submitted is accurate. For the majority of businesses, this takes between 1 and 5 business days.
      2. Interdepartmental checks: HMRC checks if any liabilities are due on your tax account – whether that is VAT, PAYE or Corporation Tax. In some cases, HMRC will set off VAT repayments against overdue liabilities. This takes about 1 business day.

      3. Further checks: In certain cases, HMRC may conduct additional checks on your VAT return. This happens to around 10% of all VAT refunds submitted by UK businesses. If this happens, HMRC will typically contact you for additional information or documentation around 30 days after the submission of your VAT return. These checks can extend the processing time of your refund.

      4. Payment processing: HMRC releases the repayment via the BACS system. This takes between 3 and 5 business days to reach your bank account.