HMRC VAT Refund 2026: How Long It Takes, Wrong Bank Account and What to Do

If your VAT return shows more VAT reclaimed than charged, Box 5 is a negative figure and HMRC owes you a VAT repayment. HMRC says repayments are usually made within 30 days of receiving your return. It can take longer if HMRC decides to check the return first.

This guide covers how the refund is paid, how to check where it is, and what to do if HMRC paid it into the wrong bank account.

When do you get a VAT refund?

You get a repayment when your input VAT (Box 4, VAT on purchases) is more than your output VAT (Box 3, VAT on sales). Common reasons:

• A start-up buying equipment before sales pick up
• A big one-off purchase such as a van, machinery or a refit
• Zero-rated sales, for example food, children's clothing, books or exports, while your costs carry 20% VAT
• A quarter with low sales and normal running costs

Businesses that are regularly in repayment can ask HMRC to move to monthly VAT returns, which gets the money back sooner.

How long does an HMRC VAT refund take?

• Usually within 30 days of HMRC receiving your return
• Longer if HMRC checks your return. HMRC may ask for invoices, bank statements or an explanation of a large claim. Reply quickly. The clock effectively stops until you do.
• First returns and unusually large claims are more likely to be checked

If HMRC takes too long without good reason, you may be entitled to repayment interest on the VAT owed.

How to check your VAT repayment

1. Sign in to your HMRC business tax account with the Government Gateway details for your VAT registration.
2. Open VAT and check the payments and repayments section for the return.
3. Check the bank details HMRC holds. If there are none, HMRC sends a cheque to your principal place of business, which takes longer.

If more than 30 days have passed and there's no update, contact HMRC's VAT helpline with your VAT registration number and the return period.

HMRC VAT refund paid to the wrong account

This happens more often than you'd think. Usually the bank details were mistyped at registration, an old closed account was never updated, or, worst case, someone changed them fraudulently. Act straight away:

1. Check the account details in your business tax account. Note exactly what HMRC holds and when it was last changed.
2. If you didn't make the change, treat it as possible fraud. HMRC has warned of fraudsters changing VAT bank details to divert repayments. Change your Government Gateway password and tell HMRC immediately.
3. Write to HMRC. Give your VAT number, the return period, the amount, the payment date and the incorrect account details, and ask HMRC to trace and recall the payment with the receiving bank. Keep a copy.
4. If the account was closed, the payment often bounces back to HMRC and is reissued once you give correct details.
5. If the money went to a live account you don't control, ask your own bank for help too. The receiving bank can usually identify the account holder, but it may only act on a request from HMRC or the payer.
6. Correct the bank details in your business tax account, so the next repayment goes to the right place.

Be prepared for the "your mistake" answer. If the wrong details came from your own registration or VAT484, HMRC may say it paid where it was told to. A clear written timeline of what you submitted and when makes a recall more likely to succeed.

How to avoid VAT repayment delays

• Keep invoices for every input VAT claim. A missing invoice is the most common reason HMRC holds a repayment.
• Explain big claims. A note with your records ("new van bought 12 August, invoice attached") answers HMRC's first question before it is asked.
• Check the bank details before every repayment return.
• File on time. A late return means a late refund, and with the points-based penalty system, late returns still earn penalty points even when HMRC owes you money (see late VAT return penalties).
• Use the right rates. Reclaim only the VAT actually shown on invoices. Electricity bills from October 2026, for example, may show 0% VAT.

Repayment returns with AccLedger

AccLedger calculates Box 4 from your recorded bills and expenses, so each pound of input VAT you claim is backed by an invoice you can find in seconds if HMRC asks. It files the return straight to HMRC under Making Tax Digital and shows your obligations, liabilities and payments as HMRC holds them.

• Full bookkeeping: MTD VAT software, with bank feeds and VAT on every transaction
• Spreadsheet records: VAT bridging software, to file from Excel for £4.99 + VAT a return

New to MTD filing? Read how to submit a VAT return. Start a 30-day free trial — no card needed, and you can file VAT during the trial.

Frequently asked questions

How long does a VAT refund take from HMRC? Usually within 30 days of HMRC receiving your return. It takes longer if HMRC checks the claim.

Why is my VAT repayment taking so long? Usually because HMRC is checking the return, or because it has no bank details and is sending a cheque. Check your business tax account, then call HMRC if 30 days have passed.

HMRC paid my VAT refund to the wrong account. Will I get it back? Often, yes, if you act quickly. Write to HMRC with full details and ask it to recall the payment. Treat any change you didn't make as possible fraud.

How do I change the bank account for VAT repayments? In your HMRC business tax account, under your VAT details.

Does HMRC pay interest on late VAT refunds? It may pay repayment interest if it's late in making a repayment you're owed.

Can I get VAT refunds faster? If you're regularly in repayment, ask HMRC to move you to monthly returns.

This article is general guidance based on HMRC's VAT repayment guidance as of October 2026 and is not tax advice. Contact HMRC about your own repayment.