TaxPersonal TaxExclusive – Police get tough on VAT

Exclusive - Police get tough on VAT

Customs & Excise could face a judicial review after claims by more than 30 police forces that they should be allowed to recover over #10m in VAT paid on vehicles in the mid-1990s.

The issue came to a head this week at a meeting between senior Customs officials and representatives of the authorities, led by tax consultancy Williams Jeffery Barber. Customs stood its ground.

‘Our argument is correct,’ said a Customs spokesperson. ‘The position is that Williams Jeffery Barber are going back to their clients to see if they want to take it to judicial review. We are upholding the law. The (police) solicitors are interpreting it in a different way.’

WJB declined to reveal precise technical details of the claim, which relates to the years 1992 and 1995 when police authorities were not able to claim VAT back for vehicles.

But director Duncan Groves said: ‘Following that meeting, we maintain the veracity of the legal basis of our position. We are presently considering our clients’ options.

‘Due to the nature of this issue an appeal to a VAT tribunal is not possible and therefore any legal challenge would need to be by judicial review.’

Customs said the argument related to the VAT (Input Tax) Order 1992 which outlined the areas of VAT blocked from recovery attempts. It covers cars bought by local authorities.

Related Articles

HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

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
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor