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HMRC internal manual

VAT Repayment Supplement Manual

Trader says amount is insufficient

If exceptionally a trader contends that the amount of repayment supplement is insufficient to compensate for the length of delay by HMRC, they can apply for an additional ex-gratia payment through the complaints procedure.

There are strict criteria to qualify for an ex-gratia payment.

Guidance is contained in the Complaints and Remedy Guidance (CRG) manual (financial redress – unreasonable delay). Contact Central Customer and Strategy for further advice and guidance on ex-gratia payments.

Statutory Interest under section 78 VATA is not appropriate in these circumstances because it is specifically excluded by subsection (2). A claim for Statutory Interest can only be considered if repayment supplement is not due.