Pre-credibility checks
Over the past few months we have seen letters from HMRC across all taxes that ongoing enquiries will be suspended during the coronavirus pandemic. Having done a little digging, it appears that HMRC has deployed additional resources into conducting pre-credibility checks, namely from teams that would normally be conducting general compliance checks.
What is a pre-credibility check? Pre-credibility checks (pre-creds) take place when a business has submitted a VAT repayment claim. Where a repayment claim fails the automated test, HMRC will manually check whether the claim is valid before it releases the repayment.