VAT refunds advance

[AndyAudi]

Never knew such a thing existed,

Just had an email offering to accelerate VAT refund from

https://www.adsum-works.com

Are there really folk out there signing up to pay 2% of their VAT reclaims to get it a few days earlier

(I’m assuming the “up to 60days a year is 12 mths 5 days earlier)

[4Q]

I used to claim vat refunds every quarter and it usually hit my account within a few days of claiming. We’d get a vat audit every couple of years or so which would slow it down for a few weeks but never any issue. I certainly wouldn’t have wanted to give 2% away as we were talking tens of £1000’s per year.

[AndyAudi]

It does seem a very odd business, basically 2% for subbing you for a week, their reviews on trust pilot are largely good, except the 1 stars….

[StevieBee]

I presume that for some where the refund is significantly large, a few days may equate to a cost much higher than the 2%.

I don't know if this applied to others but on the few occasions I've had a refund I get a bloody cheque!! So, there's further time added for that to clear which may add more costs for some.

[Benny Saltstein]

Sounds like a variation of invoice financing.

[AndyAudi]

StevieBee said:

I presume that for some where the refund is significantly large, a few days may equate to a cost much higher than the 2%.

I don't know if this applied to others but on the few occasions I've had a refund I get a bloody cheque!! So, there's further time added for that to clear which may add more costs for some.

If the refund is larger the 2% is larger also….
It must work out at about 150% APR if only advancing a few days.

You can update your online account I think to put in bank details for refund in future

[Stophe]

I’ve not seen this service offered, but assume if you bought a substantial piece of equipment in month 1 of your VAT quarter then it could be up to four months before you received the rebate, which may be worth the 2%. If however the service is only after you’ve submitted the return then best case would be 5-6 weeks advance.

Edited: I’ve read the info and appears it is only a few days. Seems fairly niche.

[4Q]

StevieBee said:

I presume that for some where the refund is significantly large, a few days may equate to a cost much higher than the 2%.

However large the sum you’re never going to make more than 2% in few days or even a few weeks or months