If HMRC delaying repaying overpaid VAT to you, are you due interest on the payment?

You will not be due interest on the repayment when it is made, but there are rules meaning that if HMRC take more than 30 days to make the repayment you may be entitled to a fixed Repayment Supplement of 5% of the refund. However, in calculating the 30 day period you have to exclude the time taken to raise and answer ‘reasonable enquiries’ into the Return. Therefore there are two things to bear in mind: firstly try and deal with any questions promptly (and accurately), it will speed up your repayment; secondly, if HMRC appear to have taken more than 30 days take professional advice about whether you should be getting the Repayment Supplement.