VAT: Repayments
Commons · Question 25242 · Tabled 28 Aug 2026 · Treasury · Official record
Answered 7 Sep 2026
Question
Asked by Ben Maguire
To ask the Chancellor of the Exchequer, if his Department will consider the potential merits of undertaking a review of the rate of interest paid to businesses on delayed VAT refunds.
Answer
Answered by James Murray, 7 Sep 2026
Interest rates on unpaid and overpaid tax are set by legislation approved by Parliament. The legislation specifies formulae which set the rates and the formulae link HMRC rates to the prevailing Bank of England base rate.The harmonised interest regime pro...