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.