Blog | by Josh Clarke | September 2026
How to Get Your VAT Repayment From HMRC (And How to Avoid the Fraud That Targets It)
Josh Clarke
A VAT repayment lands in the bank without much fuss more often than it should, which is probably why so few business owners think about how the process actually works until the one time it doesn't go to plan. Either the money's late, or worse, it turns out to have gone somewhere it shouldn't have. Both are worth understanding before either happens to you, so here's what's actually going on behind that repayment.
How does HMRC actually pay a VAT repayment?
If you're due money back on a VAT return, HMRC pays it by BACS transfer straight into whichever bank account it holds on file for you. That's the fast route, and it's why keeping your bank details current with HMRC matters more than it might seem. If HMRC doesn't hold valid bank details for you, it falls back to sending a cheque instead, which obviously takes longer to arrive and longer still to clear once it does.
The account HMRC pays into has to be in the name of the VAT-registered person or company, not a director's personal account or a trading name that doesn't match the registration exactly. It's a small detail that occasionally trips up a newly registered business that hasn't quite finished setting up its own banking before its first repayment falls due.
How long does a VAT repayment actually take?
HMRC's own guidance is that repayments are usually made within 30 days of receiving your VAT return, and in practice that's a reasonably reliable figure for a straightforward return. Where it slows down is if HMRC decides to check the return before paying out, which it's entitled to do, and there's no fixed timetable for how long that check takes. A return that claims an unusually large repayment relative to your normal trading pattern, or one that follows a change to your bank details, is more likely to get a closer look.
There's a silver lining if HMRC does take longer than it should: repayment interest. Since the rules on this changed a couple of years ago, HMRC pays interest on a delayed repayment at Bank Rate minus 1%, with a floor of 0.5% so it never goes lower than that even if Bank Rate itself is low. With Bank Rate currently at 3.75%, that puts the repayment interest rate at 2.75% right now, though it moves automatically whenever the Bank of England changes its own rate.
How do I actually change my bank details with HMRC, and what should I watch out for?
This is the part that's changed the most, and it's worth knowing if you've been told to use the paper VAT484 form, because that advice is now out of date. Since 5 August 2024, the paper VAT484 is no longer the standard way to notify HMRC of a change to your VAT registration details, including your bank account. HMRC withdrew it as the default route specifically because fraudsters had been exploiting it, and the digital route is both quicker and considerably more secure.
In practice that means a business should update its own bank details through its VAT online account rather than posting a form, and there's a genuinely important nuance if you use an accountant or agent: an agent can request most VAT registration changes through their Agent Services Account on a client's behalf, but a change to bank account details or the registered email address has to be made by the business itself, not the agent. If your accountant offers to sort a bank detail change for you without you logging in yourself at some point, that's worth a second look rather than assuming it's routine (as they are likely accessing your company account instead of their agent account).
What's the fraud risk, and how do I actually spot it?
Here's the part that genuinely matters and doesn't get talked about enough. Fraudsters have been submitting fake requests to change a business's VAT bank details, redirecting that business's own legitimate repayment straight into an account they control. The business affected often doesn't notice anything wrong until the repayment they were expecting simply doesn't turn up, because HMRC's confirmation letter for a details change doesn't actually spell out what was changed. If you weren't the one who requested it, that letter can easily look like routine correspondence rather than a red flag.
Businesses that claim repayments regularly, particularly anyone dealing in zero-rated supplies such as food, children's clothing or exports, are the ones fraudsters target most, simply because there's a repayment to intercept more often. The practical defence is straightforward even if it's easy to skip: check your VAT online account periodically for any change you didn't make, and treat a repayment that's noticeably later than the usual 30 days as worth chasing immediately rather than assuming it's just HMRC being slow.
| If you notice... | What it usually means | What to do |
|---|---|---|
| A repayment is more than a few weeks later than normal? | HMRC may be checking the return, or something has gone wrong with your details | Log into your VAT online account and check the repayment status before contacting HMRC |
| A confirmation letter about a bank detail change you don't remember requesting | This can be a genuine sign of attempted fraud | Contact HMRC directly using the number on GOV.UK, not any number in the letter itself |
| Your accountant offers to change your bank details without you logging in? | This shouldn't be possible for a genuine agent | Ask them to explain, since bank detail changes have to come from the business itself |
Frequently asked questions
Can my accountant change my VAT bank details for me?
No, not directly. An agent can request most other VAT registration changes through their Agent Services Account, but a change to bank account details or the registered email address must be made by the business itself through its own VAT online account.
Is the VAT484 form still valid at all?
It's no longer the standard route since 5 August 2024, though HMRC still allows it in specific circumstances, such as for digitally excluded customers who contact HMRC directly, or when someone is taking over VAT responsibility from another party. For a routine bank details update, the online account is the correct route now.
Do I get compensated if my VAT repayment is late?
You can be entitled to repayment interest if HMRC pays later than it should, calculated at Bank Rate minus 1% with a 0.5% floor. It's currently 2.75%, based on the Bank Rate of 3.75% at the time of writing, and it adjusts automatically whenever Bank Rate changes.
Need help?
If you'd like a second pair of eyes on a VAT repayment that's overdue, or want your VAT registration details checked as part of your normal bookkeeping with us, the LYA team is happy to help. Email support.london@loveyouraccountants.com or call 01372 374143, or book a free consultation to get started.
Book a free consultation: https://loveyouraccountants.com/contact.
Author
Josh Clarke
Josh is our Chief Operating Officer, overseeing operations to ensure a smooth, responsive and high-quality service. With a practical, clear approach...
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