Brexit & EconomyPoliticsInterest boost to VAT reclaims

Interest boost to VAT reclaims

RSPCA and Totel Ltd challenge government over VAT repayments

The government could be forced to pay out tens of millions of pounds to
taxpayers reclaiming disputed VAT repayments, following a landmark challenge by
the RSPCA and Totel Ltd.

The decision could particularly affect those whose repayments have been held
up following carousel fraud chain concerns.

Following the decision taxpayers who are owed VAT repayments and have gone
through a tribunal will be entitled to an interest rate at least 2% higher than
previously.

Both claimants were challenging HM Revenue & Customs’ stance that the
rate of interest paid on VAT repayments won after a tribunal should be the same
as when VAT is overpaid due to an HMRC error.

The High Court ruled that the rate after a tribunal should be at least 1%
higher than the base rate rather than 1% below, the administrative error rate.

Claimants linked to the Bond House action, the test case on disputed VAT
reclaims associated with carousel fraud chains, could claim back tens of
millions extra in interest as a result.

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

4m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter