Covid VAT Update – Procedures where VAT returns have been paid in error

HMRC have recognised that some taxpayers have encountered problems when trying to take advantage of some of the COVID-19 measures, and have announced details of the procedure for taxpayers who have paid their VAT returns in error (e.g. direct debit not cancelled) when they meant to defer the payment under the COVID-19 VAT deferral easement.

The HMRC releases:

A refund can be claimed if a Direct Debit was not cancelled in time.

The quickest way for customers to claim a refund is to submit a Direct Debit Indemnity Claim to their bank. When doing so they must ensure they state they want to claim a refund under the Direct Debit Indemnity Scheme (DDI). There is no time limit in making this request.

If the customer wants a repayment from HMRC rather than contacting the bank, they must ensure that their bank details are updated using the online services. Due to COVID-19 restrictions, Payable Orders are not being issued.

To confirm, it may take 21 days for the refund to be received if the Direct Debit Indemnity Claim process is not used.

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