GBP 10,884.75 in overdue VAT repayments: how we helped Nupo ApS recover its money from HMRC and move away from paper cheques
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Nupo ApS, a Danish company registered for VAT in the United Kingdom, faced exactly this problem. Its tax account showed overpayments for three consecutive quarters of 2025, totalling GBP 10,884.75. Despite the passage of time, the money had not reached the client, and establishing the status of each amount required direct contact with HM Revenue & Customs.
The payment method created an additional complication. Nupo ApS did not have a UK bank account, so HMRC’s system was set to issue the repayments by paper cheque. For an overseas company, this was far from convenient: delivery could take a long time, the cheque could be sent to an outdated address, and paying it into a Danish bank account would involve high fees.
We took ownership of the entire case. We verified the three outstanding overpayments, updated the client’s address details, contacted HMRC repeatedly and established the status of each amount. But we did not stop at arranging for the cheques to be sent. We found a better option: direct payment into Nupo ApS’s overseas bank account.
In the end, the client received the full GBP 10,884.75 by bank transfer. At the same time, we changed the way future VAT repayments would be made, so that subsequent amounts could go directly into the company’s account — without paper correspondence, additional fees or the risk of a cheque being lost.
Three overpayments were visible in the records, but the money had still not arrived
The case began in early February 2026, when Nupo ApS asked us to help recover VAT overpayments for the second, third and fourth quarters of 2025. The company knew that repayment amounts had been reported, but none of them had reached its account.
The individual amounts were:
- GBP 1,968.03 for the second quarter of 2025,
- GBP 5,300.64 for the third quarter of 2025,
- GBP 3,616.08 for the fourth quarter of 2025.
The client was therefore waiting for a total of GBP 10,884.75. This was already a material amount whose absence affected the company’s day-to-day cash flow. The client stressed that the matter was urgent and wanted to know whether HMRC had begun processing all three repayments.
In the UK system, reporting a repayment amount does not always mean that the funds will automatically reach an overseas taxpayer in the expected form. In Nupo ApS’s case, we needed to establish exactly what had happened to each return and whether HMRC had already started the payment process.
We could not assume that all three overpayments were at the same stage. Each quarter could have a different status: one amount might already be in progress, another might still require additional action, while a third might not be displayed correctly in the system.
We checked each amount separately
After receiving the request, we reviewed the client’s HMRC account. The first clear information concerned the GBP 3,616.08 repayment for the fourth quarter. The system showed that the payment was being processed.
The position of the other two amounts was less clear. The second- and third-quarter overpayments were not displayed in the same way, even though the client confirmed that it had not received them. We therefore had to begin resolving the matter directly with HMRC.
From that point, we did not treat the case as one general request for a GBP 10,884.75 refund. We established separately what had happened to each of the three amounts. This prevented the matter from being treated as partly resolved simply because one payment had begun to be processed.
HMRC initially indicated that the fourth-quarter repayment had already been issued as a cheque. There was still no explanation, however, for why the client had not received the money for the earlier periods. We therefore continued contacting the authority and did not close the case after the first update appeared in the system.
A paper cheque was formally valid, but commercially impractical
Nupo ApS did not have a UK bank account. In these circumstances, the standard solution applied by HMRC in this case was a paper cheque sent by post to the taxpayer’s address.
At first glance, this method might have seemed acceptable. The client was even prepared to receive one cheque covering all three quarters. It wanted the amounts combined, however, because paying each foreign cheque into its bank account would incur a separate and substantial fee.
This highlights an important difference between formally completing a repayment and providing a solution that genuinely works for the business. For the tax authority, issuing a cheque may mark the end of the process. For an overseas company, it is only the start of another problem: waiting for the post, taking the document to the bank, paying the fees and then waiting for the funds to clear.
With three separate cheques, the costs and administrative work would have been repeated three times. There was also a risk that the envelopes would arrive at different times, or that some might not arrive at all.
An outdated address increased the risk
While handling the case, we discovered that HMRC’s system still contained an old address for Nupo ApS. This was particularly important because the cheque for the fourth quarter was due to be sent by post.
The outdated details could explain why correspondence had not been arriving correctly, while also increasing the risk that another payment document would be sent to the wrong place. The client provided its current company details, and we updated the address in HMRC’s system.
Changing the address alone did not resolve the issue with payments that had already entered the process. If a cheque had been issued earlier, it could still be sent to the old address. We therefore needed to keep monitoring the case and establish whether the document had actually been posted, whether it could be cancelled and how the remaining overpayments should be handled.
This stage shows why keeping taxpayer details up to date matters beyond the initial VAT registration. The address held by the authority can affect the delivery of letters, queries and decisions — and, in the United Kingdom, paper payment instruments as well.
We took over contact with HMRC and saw the case through
The client did not have to contact the UK tax authority itself, work out which number to call or explain the history of three separate returns. We took over communication with HMRC, monitored the account and repeatedly followed up for information.
The matter was not resolved with a single enquiry. During the first few weeks, we did not receive a complete answer covering all three amounts. Further action was needed, including repeated attempts to contact HMRC by telephone. We investigated why the second- and third-quarter overpayments were not displayed in the same way as the fourth-quarter repayment and whether separate applications were required.
In the meantime, the client regularly asked for updates. That was understandable: the company was waiting for more than GBP 10,000 and, for an extended period, had no certainty about when the money would arrive or how it would be paid.
Our role was not limited to passing on information displayed in the system. We also checked whether HMRC’s response genuinely covered every period. When the authority provided the status of one payment, we continued pursuing the other two. When a cheque was marked as issued, we checked whether it had arrived and whether it could be replaced with a more convenient payment method.
The aim was not merely to obtain an answer. It was to make sure that the full amount actually reached the client.
We established that HMRC could pay the money into a Danish account
The breakthrough came at the end of April. Following our contact with HMRC, we obtained confirmation that all of the overpayments could be paid directly into Nupo ApS’s overseas bank account.
This was a far better solution than a paper cheque. It did not require a UK bank account and avoided the cost of paying a British cheque into a Danish bank. It also removed the risks associated with sending the document by post.
Importantly, this was not only about changing the payment method for the three outstanding amounts. HMRC allowed the overseas account to be configured for future VAT repayments as well. A one-off intervention could therefore deliver a lasting benefit for the client.
We collected the information required for the application
To arrange payment into an overseas account, HMRC required additional information. This included the details of the person in whose name the application was being submitted, their position, email address and contact information, together with full details of the company and its bank.
We explained to the client that although we were handling the process on its behalf, the application needed to be linked to the business owner or an employee. We then collected Nupo ApS’s company details, information about the authorised person and the details of the Danish GBP account, including its IBAN and SWIFT code.
Once the information was complete, we prepared and submitted the formal application for payment into the overseas account. The client did not have to work through the UK form itself or determine what information belonged in each field.
On 27 April, we were able to confirm that the application had been submitted to HMRC. We also explained what would happen next and what the client should expect.
The new payment method also resolved the issue of cheques already issued
Changing the payment method was particularly important because some of the repayments may already have been processed as paper cheques. HMRC indicated that uncashed payment documents would be cancelled and the corresponding amounts reissued by bank transfer.
This meant that the client did not have to wait for the post and then incur the cost of cashing the cheques. Even where the cheque process had already begun, the funds could still be redirected to the new payment method.
We gave Nupo ApS the key information about the next stages. Setting up the new method could take several working days, while cancelling unused cheques and reissuing the money could take a little longer. HMRC was not expected to send a separate notification when the transfer was made, so the client needed to monitor its bank account.
We did not close the case once the form had been submitted. We scheduled another check of the HMRC account and contacted the client to confirm whether the funds had actually arrived.
The full GBP 10,884.75 reached the client’s account
On 13 May 2026, Nupo ApS confirmed that it had received the repayments for the second, third and fourth quarters of 2025 by bank transfer. All three amounts covered by the case had therefore been paid.
The client received:
- GBP 1,968.03 for the second quarter,
- GBP 5,300.64 for the third quarter,
- GBP 3,616.08 for the fourth quarter.
The total result was GBP 10,884.75 in recovered VAT.
The money was paid in a convenient form, without the need to cash foreign cheques. Nupo ApS did not have to speak with HMRC, explain the history of the consecutive returns or configure an overseas bank account in the UK tax authority’s system on its own.
A separate repayment relating to the first quarter of 2026 was not part of this completed case. It first required a correction to be included in a subsequent return, so it was to be handled at a later stage. This allowed us to distinguish clearly between the amounts already paid and those subject to a different process.
The most important outcome was not just a one-off transfer
Recovering GBP 10,884.75 was the direct and measurable result of our work. The client regained funds for which it had been waiting for several quarters and could put them back into its operations.
The case also produced a second benefit that will be felt in future reporting periods. Nupo ApS’s Danish account was registered as the payment method for future VAT repayments from HMRC.
From that point onwards, subsequent amounts could be paid directly into the company’s bank account. The client no longer needed to wait for a paper document, check whether it had reached the correct address or pay fees to cash a cheque abroad.
In practice, this shortened the route between HMRC approving a repayment and the business gaining access to the money. It also reduced the number of stages at which the process could fail: there was no postal delivery, no need to take a cheque to the bank and no subsequent cheque-clearing process.
Why were we able to see the case through?
We checked every period, not only the latest return
At first, the system displayed the fourth-quarter repayment most clearly. Had we focused on that amount alone, the case might have been treated as partly resolved even though the client was still waiting for more than GBP 7,000 relating to earlier periods.
We reviewed the second, third and fourth quarters separately. This ensured that every overpayment remained part of the case until the client confirmed receipt of the full amount.
We did not stop after HMRC’s first response
Contacting the authority required time and repeated follow-up. The lack of an immediate answer did not mean that the client should return to the issue alone several months later. We continued seeking clarification, used telephone contact and monitored changes visible on the account.
Cases like this are often not resolved by a single form. It may be necessary to establish which department received the request, whether payment has already been initiated and what happened to documents that the authority considers sent but the taxpayer has not received.
We looked for a better solution than the standard process
The client was initially prepared to accept a paper cheque because it appeared to be the only option available. Its main concern was that the three amounts should be combined so that it would not incur three sets of bank charges.
We went a step further. We confirmed directly with HMRC that the repayment could be sent to an overseas account. As a result, the client did not have to choose between three expensive cheques and one slightly less expensive cheque. It could move away from this payment method altogether.
We managed the whole process, not just the application
Our work included checking the overpayments, updating the address, contacting HMRC, gathering the required information, preparing the application, registering the overseas account and later confirming that the money had arrived.
This distinction matters. Submitting a form alone does not guarantee that the case has been resolved successfully. The process can only be considered complete when the client has actually received the funds it is due.
What can businesses registered for UK VAT learn from this case study?
A repayment reported in a VAT return does not always mean a quick bank payment
A company can prepare its return correctly and still wait a long time for the money. Depending on the account settings, the bank details held and the taxpayer’s status, additional steps may be required.
After reporting a repayment, it is therefore worth checking not only the return itself but also the payment status in the system. If the money does not arrive within the expected timeframe, direct intervention with HMRC may be necessary.
Company details should be updated regularly
A change of registered office, correspondence address or contact person should also be reflected in overseas tax systems. Outdated details may cause important documents, queries or cheques to be sent to the wrong place.
For Nupo ApS, updating the address was one of the first steps in bringing the case under control. Without it, even the successful initiation of a repayment would not have guaranteed that the paper document reached the client.
Paper cheques create avoidable costs
For a business operating outside the United Kingdom, a cheque may mean a high bank fee, a longer wait and additional administrative work. If repayments arise regularly, these costs recur with every document.
It is therefore worth checking whether payment into an overseas account is possible rather than automatically accepting the standard method proposed by the authority. For Nupo ApS, one change improved not only the three outstanding repayments but future refunds as well.
Different periods and procedures need to be handled separately
A taxpayer’s account may contain several amounts at different stages of the process at the same time. One may be ready for payment, another may require an additional application, and a third may remain linked to a planned correction of a VAT return.
The full balance should therefore not be described as one repayment without prior analysis. In Nupo ApS’s case, the three quarters of 2025 were recovered through the completed process, while the amount for the first quarter of 2026 required separate action after a correction had been filed.
From overdue cheques to an efficient bank transfer
Nupo ApS’s case began with three overpayments that the client had been unable to recover effectively. A total of GBP 10,884.75 remained with the UK tax authority, and the company did not know when the money would arrive or whether it would receive one cheque or several.
HMRC also held an outdated address for the company, increasing the risk that paper correspondence would be sent to the wrong place. Even a correctly delivered cheque would have meant high fees and another wait while the bank processed it.
We took ownership of the case from beginning to end. We established the status of every amount, updated the company’s details and communicated directly with HMRC. We then identified a way to have the funds paid into a Danish account, collected the required information and submitted the appropriate application.
In May, the client confirmed receipt of the full amount for all three quarters of 2025. At the same time, a more convenient process had been put in place for future repayments.
This is where VAT support goes beyond preparing returns. What matters is not only whether a repayment has been reported, but whether the money has genuinely reached the business — in a way that does not create further costs and complications.
Waiting for a VAT refund from a foreign tax authority?
In international sales, the existence of an overpayment does not always complete the process. It may be necessary to check the balance, submit an additional application, update company details or contact the local authority directly. If the authority uses a payment method that is unsuitable for an overseas business, it is also worth checking whether a more convenient alternative is available.
At amavat, we support e-commerce businesses with foreign VAT compliance, communication with tax authorities and the recovery of funds they are owed. We manage cases until the refund stops being merely an entry in a VAT return and actually reaches the client.
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