Andrew Needham looks at what redress a business has if HMRC delays a repayment to it. 

Some businesses receive regular VAT repayments because they sell mainly zero-rated goods or services; for example, farmers or booksellers. In these circumstances, as the business is making taxable supplies, the input tax on purchases can be reclaimed, so the business normally receives a VAT repayment. 

Typical circumstances 

A business that normally makes payments may have an exceptional repayment if it incurs a large amount of input tax on (say) a standard-rated building or a large piece of machinery. In these circumstances, HMRC may want to verify that the claim is legitimate before making a repayment. 

Some businesses also occasionally receive repayments because those businesses are seasonal. Thus, an ice-cream vendor at the seaside will have most of its sales in the summer, with