The countdown is on for fleet companies to submit claims for VAT rebates
worth millions of pounds.
HM Revenue and Customs will consider VAT refunds on fleet support bonus
payments paid to companies that purchased vehicles outright between 1973 and
1996/97, as well as mileage reimbursement payments made by companies to
Geoffrey Bray, chairman of Fleet Support Group, said reducing costs is
foremost on the agenda given the current economic climate.
‘Vehicles represent a huge area of cost and, unfortunately, there are many
organisations that are not dealing with this issue. Companies should lodge
claims now, which could result in a significant financial windfall,’ he said.
According to KPMG, a fleet of 100 cars with a list price of £15,000 and an
average bonus payment at 10% could result in a significant repayment. With VAT
at the time paid at 15%, the overpayment would be £19,568. Any bonus payments
then made several years after could make the VAT significant – £156,520 over
eight years plus interest, resulting in a rebate of more than £300,000.
The claims are the latest to stem from the Fleming case, whereby over-paid or
under-claimed VAT is being recouped following a decision by the House of Lords.
The deadline for claims is 31 March, 2009.
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