News
£100m to be paid on VAT cases by HMRC
22 July, 2009
The HMRC is likely to pay out about at least £100m to businesses in overpaid VAT, after dropping its request for a ‘stay’ in the Fleming-Bodycraft case.
In February 2009 the Court of Appeal ruled that a motor trader, Bodycraft, could claim for overpaid VAT in excess of a time limit of three years imposed in the mid-90s.
The court ruled that since there was no transitional period involved when the government introduced the three-year cap, the cap was incompatible with European Union law.
The news comes as Condé Nast, also pursuing a similar point, won a case at the Court of Appeal. Tony McClenaghan, head of indirect tax at Deloitte, said that the claims are likely to amount to at least £100m in the Condé Nast case.