VAT

News Item: Could you be in for VAT windfall?


By Andrew Stephenson

 

 

It’s not very often here in the UK that one will hear business people say “thank goodness for the EU!” However, thanks to our colleagues in Europe you may be in line for a VAT windfall.

 

 

When HM Revenue and Customs introduced the three year cap on VAT claims they did so with almost immediate effect. This was contrary to EU law and thanks to a number of large UK traders taking on HMRC and pursuing their claims to the EU courts, HMRC have been forced to announce a transitional period for the submission of claims. The period however ends on 31 March 2009 so if you think you may have a claim you must take action now to safeguard your entitlement.

 

You can go back to 1 April 1973 and reclaim: 

  • Input tax not claimed but due for periods up to and including 1 May 1997;
  • Output tax overpaid or overdeclared (where your return normally discloses a refund due) for periods up to 4 December 1996.

Reclaims will be paid subject to statutory interest although there is still some debate as to whether this ought to be compounded.

 

I have already negotiated substantial refunds for some clients so if you think you may be able to make a claim get in touch now.

 

Andrew can be reached on 01254 688100 or by email to a.stephenson@pierce.co.uk