HMRC Insolvency Guidance:  Dropbox file sharing service for VAT426 repayments

R3’s Tax Working Group have held regular meetings with HMRC to ensure issues encountered by members are brought to the attention of HMRC. Members have continually reported issues in the processing of VAT 426 claims. HMRC have acknowledged there is a back log of VAT claims and tax clearances, however, the back log is widely attributable to the consequence of the coronavirus pandemic. Initially a considerable number of HMRC personnel were transferred to support schemes put in place to help business’ and individuals impacted by the pandemic. As the support to these schemes has reduced, HMRC have seen a number of members of staff transferred back to their original roles, some of whom have begun dealing with any backlog of Insolvency work.

To improve this situation HMRC have now a new facility for Insolvency Practitioners; a Dropbox file sharing service for VAT426 repayments. HMRC appreciate our member’s patience over the last few months, and while there still may be some element of delay as the measures introduced take effect, HMRC hope members will understand that they are doing everything they can to improve the situation.

Insolvency Practitioners; a Dropbox file sharing service for VAT426 repayments

R3 are currently exploring the possibility of introducing a specified email address for members to report issues or problems encountered when dealing with HMRC. This will allow R3 to report to back to HMRC on common issues faced by members.