Virgin Media given £81.5m VAT refund

BROADCAST COMPANY Virgin Media has been given a £81.5m VAT refund from HM Revenue & Customs.

The sum covers the period from between 2003 and 2011, though Virgin Media refused to disclose the reasons for the refund or which part of its business it related to.

In a separate agreement, the company will pay a lower-than-expected £23.6m in VAT following a dispute with HMRC that threatened a court case on the issue.

The Taxman had previously challenged Virgin’s VAT treatment of some of its revenues. The company warned in its accounts that it faced a possible charge of up to £74.6m. Virgin Media said it did not believe the claim would result in a liability and did not set aside any money.

Related reading

Life Belt with Computer Folders