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      Why is my refund taking so long?

      Once HMRC verifies your VAT refund, InstantVAT pays it to you instantly. Although the vast majority of HMRC verifications take less than 5 days, the process can take upwards of 30 days, depending on various factors such as the complexity of your submission and the current workload of HMRC. Here’s what you need to know to navigate this process effectively:

      Typical Verification Time:

      HMRC verifies 90% of VAT refunds within the first 5 business days after submission. This quick turnaround is beneficial for most businesses, allowing them to receive their funds promptly. However, it is important to remember that while many refunds are processed swiftly, some may encounter delays due to additional checks or the need for further documentation.

      Delays Beyond 30 Days:

      If your refund has been outstanding for more than 30 days, HMRC is likely conducting a detailed review. This could be due to several reasons, including discrepancies in your VAT return, the need for further information to clarify certain entries, or random selection for more thorough auditing. During this period, it is crucial to remain proactive to ensure your refund is processed as quickly as possible.

      Recommended Actions:

      1. Contact HMRC: If you find that your refund is delayed, it is advisable to reach out directly to HMRC. You can call their VAT support helpline at 0300 200 3700 for an update. Having your VAT registration number and details of your submission on hand will help expedite the process.
      2. File a complaint: If your refund has taken more than 30 days and you have not been contacted by HMRC, we advise you to file a complaint with HMRC. This has proven to be the most effective way to expedite HMRC communication and verification after 30 days.
      3. Await HMRC Communication: Be prepared to receive communication from HMRC. An HMRC agent may contact you via letter or email (based on your communication preferences) with additional questions regarding your VAT return. It’s essential to respond promptly and thoroughly to any inquiries to avoid further delays.
      4. Consult Your Accountant: If you have an accountant, it’s advisable for them to respond to HMRC on your behalf. They possess the expertise to handle queries and may be able to resolve issues more efficiently, ensuring that your refund is processed without unnecessary complications.

      Note: Once HMRC verifies your refund, InstantVAT will pay it to you instantly, regardless of how long the verification takes. This means no matter the verification time, you are guaranteed to get repaid faster with InstantVAT. This expedited payment can significantly improve your cash flow, allowing you to reinvest in your business sooner.