VATease Newsflash – HMRC invites claims following 3 year cap ruling

In our March and April 2006 newsletters we reported on the Court of Appeal case of Fleming (t/a Bodycraft).

It appears that this and the subsequent case of Condé Nast Publications Ltd have overturned the application of the 3 year cap to period prior to its introduction in 1996 and 1997.

HM Revenue & Customs has appealed both cases to the House of Lords but last week released a Business Brief setting out its position in the meantime.

In the Business Brief HMRC invites claims for VAT overpaid or underclaimed for periods up to December 1996 (for output VAT overpaid or amounts improperly paid as VAT) and April 1997 (for input VAT unclaimed). Claims should be made with an accompanying claim for simple interest.

Any businesses making such a claim must undertake to repay the money paid with interest if the House of Lords should overturn the ruling. Alternatively, businesses can wait until litigation has ceased before making claims.

If you or your clients have overpaid or underclaimed VAT, including claims previously rejected by HM Revenue & Customs, from VAT periods prior to April 1997 please contact VATease to discuss the scope for submitting a claim immediately or after litigation has finished.

If you require further information please contact us on 0121 778 4299.

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