VAT refund deadline looms: 31 March 2009

January 30th 2009

Approximately 12 years ago HMRC announced that claims for overpaid VAT, including claims which had already risen, would only be met if submitted within three years of the overpayment. This instantly cut off taxpayers’ rights to reclaim VAT overpaid as far back as 1973.

On the 23 January 2008 the House of Lords ruled that HMRC was wrong to retrospectively apply the cap without introducing a transition period, which has led to an opportunity to reclaim the overpayments. The anticipated cost to the Treasury is as much as £1 billion in claims and interest.

Many businesses may qualify for refunds; recent cases cited have been Charities, the motor trade, companies operating fleet vehicles and mileage reimbursement payments made by companies to its employees.

Prosperis is able to refer to a firm of special advisers to establish if you have a claim; but you will have to act fast as the cut off for claims is 31 March 2009.