Homestyle shocked by tax bill
Homestyle, the UK furniture retailer, was left reeling yesterday after it learned that it may have to pay an extra £23m in sales taxes.
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Customs and Excise has called into question the amount it paid on product guarantees sold between December 1999 and April 2001.
Homestyle has been paying just 5% on the portion of customers bills that it claims covers the guarantee, but Customs officials argue it is due the full rate of VAT at 17.5%.
The chief executive of Homestyle, Michael Rosenblatt said he would challenge the demand.