The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the situations when HMRC may be required to pay a business interest due to the fact that it has made an official error which has resulted in the business paying too much VAT.
The Government published the draft Finance Bill 2018–19 , cl 32 and Sch 14, which contained provisions to replace repayment interest with a single interest that covers VAT, corporate tax and income tax self assessment. Under the proposed changes, interest will not be payable in certain circumstances such as where HMRC is looking at the return, where returns are outstanding or where a person has been asked to provide information or security and this remains outstanding. However when Finance (No. 3) Bill was published this provision was no longer contained in the Bill and it would appear that the government has delayed implementing this provision for the moment.
If HMRC makes one of the following types of errors, it will be required to pay the business interest on the amount.
The business has:
HMRC is also required to pay
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