Credit balances in Great Britain often arise from the correction of a preceding quarterly report. Since Brexit however, they are, mainly from refunds of paid import VAT.
The refund of a credit in the UK can be made in two different ways:
- Transfer to your domestic bank account on file in your HMRC-Account
Since February 2022, it is also possible to have your domestic bank account for refunds deposited into your HMRC account. Until recently, a refund was only possible to a UK bank account or an account with service providers such as wise.com. Credits will then be automatically transferred to the account.
If you would like to have your bank account on file in your HMRC account, please send us your bank account details (name of the bank, IBAN and BIC/SWIFT) via email to email@example.com. Our partners will then save your bank details in your HMRC account.
- Sending a cheque for deposit at your bank
Reimbursement of funds via cheques is the standard HMRC procedure if there is no bank account on file in the HMRC account. The cheque must be cashed within six months.
In this case, the procedure is as follows:
- Cheques are issued by HMRC following the quarterly return.
- The cheque is sent to Taxdoo
- Taxdoo forwards the cheque to your business address stored in our system.
The British tax authorities (HMRC) do not provide for offsetting the credit against a subsequent return (as is the case in France or Italy, for example).