Harnett Accountants Twickenham bring you this report from Accountancy Age, revealing how VAT claims going back as far as 1973 are now going through the European courts, and could see the taxman repaying tens of billions in repayments:
“THE COURTS are presumably growing tired of VAT reclaims cases now.
At least, if they aren’t, they soon will be.
In July, former high street retailer Littlewoods had its claim sent back to the UK courts by the European Court of Justice, sparing – at least temporarily – HM Revenue & Customs a bill that could have run into the billions.
The dispute centred on whether refunds on VAT overpayments, made by Littlewoods between 1973 and 2004, should have been refunded with simple interest or with compound interest.
The claims were made where customers had failed to fully pay for goods, but the retailers had paid the full VAT onto the taxman. Many now predict the UK court will rule in the taxman’s favour, which will see the VAT returned to Littlewoods with simple interest.”
source: full article
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