Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of levels of performance in processing and paying VAT refunds.
HMRC continually monitors its performance for processing and making VAT repayment returns (refunds). It processes around 2 million repayment returns annually. Over 90% of all repayments are authorised within 10 working days of receipt.
As part of its responsibilities for the care and management of the VAT system, HMRC is required to make reasonable enquiries prior to making a repayment to prevent VAT fraud, which is damaging to the UK economy. It gives high priority to checking repayment returns as it is aware of the importance of cash-flow to smaller businesses.
In circumstances where HMRC takes over 30 days to process a repayment return, a Repayment Supplement is paid. Repayment Supplement is due on less than 1% of repayments received.