Customs VAT defences starts to crumble
Pressure is being placed on Customs and Excise to make a policy statement on the treatment of VAT repayments following its defeat by Marks & Spencer over biscuits and other foodstuffs.
Pressure is being placed on Customs and Excise to make a policy statement on the treatment of VAT repayments following its defeat by Marks & Spencer over biscuits and other foodstuffs.
On Thursday last week, the European Court of Justice ruled in favour of the high-street favourite in its long running dispute over the repayment of VAT on biscuits, tea cakes, bottled water and gift vouchers.
John Kennedy, a VAT partner at Deloitte & Touche estimated Marks & Spencer could hope to claim back VAT totalling between £8m and £9m, including interest.
But he said the M&S victory had opened the way for multi-million pound claims by a wide range of businesses, both retail and non-retail, to claim back VAT dating back to its inception in 1973.
‘These claims could be in excess of £100m,’ Kennedy said.
As yet, Customs has declined to make any definitive statement, since the ruling was handed down, only to say that it was disappointed by the decision and would be seeking legal advice.
Kennedy said what was now required was an ‘announcement by Customs to take away the uncertainty’.
He said it would be reasonable for the government department to give businesses until the next financial year to lodge VAT claims as well as give guidance on submission of documents as some businesses would have trouble finding documents dating back almost thirty years.
‘But,’ Kennedy added, ‘it is yet to be seen if Customs will adopt a hard-line approach. Everyone hopes Customs acts in the right spirit and takes a sympathetic approach.’
The numbers you crunch tell a story. Your expertis...
22yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleUHY Hacker Young and audit engagement partner Martin Jones face fines of more than £300,00 following Laura Ashley audit breaches. Read More...
View articleIt is hard to argue that the Taxes Management Act 1970 (TMA), wouldn’t benefit from some substantial updating. It came into force back in the mists of...
View articleMorton became Tax Director of the Office of Tax Simplification, an independent office of HM Treasury, in 2017 Read More...
View articleThe Low Income Tax Reform Group believes the government should have included tax initiatives in its plans for disabled people and employment Read More...
View articleThe Upper Tribunal has rejected an appeal from HMRC in a case relating to the taxation of termination payments made to football player employees of To...
View articleThe revised guidance sets out the circumstances under which trustees need to disclose the identities of beneficiaries to HMRC Read More...
View articleAlthough the concept of a £1,000 tax-free allowance sounds very simple, there are a number of complexities of which taxpayers and advisers need to be ...
View article