Traders check if VAT man owes them 5% more

Businesses that corrected an error on their VAT return through a voluntary disclosure to the taxman over the last four years may be owed a five per cent supplement on the repayment that the correction triggered.

Recommending such traders to check whether they can claim, accountancy firm PKF said the law requires the taxman to pay an additional 5% if he didn’t authorise a legitimate repayment within 30 days after submission.

Although the clock stops for raising and answering of reasonable enquiries, the advisor reminded that it has always been HMRC’s practice to pay the supplement when it is late settling a refund claimed on a VAT return.

Yet until now, Revenue & Customs had always refused to honour the five per cent claim when the taxpayer requests the VAT refund by making a voluntary disclosure – where the taxpayer comes forward to detail errors in their return.

But in the case of Our Communications Ltd versus HMRC, the First-tier Tax Tribunal decided that the 5% supplement should be paid by the Revenue on all refunds authorised late – regardless of what triggered them.

“This could end up costing the government millions as it is quite common for businesses and their advisers to spot a VAT error and put it right by making a voluntary disclosure,” reflected PKF’s VAT partner Nick Warner.

“Most VAT refunds that arise from correcting an input VAT claim via a voluntary disclosure currently take much longer than a month to process, even taking out the time during which HMRC is entitled to ‘stop the clock’ to make reasonable enquiries. Whether you have just started online dating, or you have been using dating sites for quite some time, it is likely that you have seen the flood of online dating apps hitting the internet. They all promise to be the best dating software around. Well, they all claim to be the best, but which one has the best benefits for singles? Which ones are the best for hooking up best dating app phoenix az and which ones will really get you laid? We have put together a top list of the best dating apps, and in addition, information on how to use them effectively to snag that win tonight.

“This means HMRC could now be faced with claims for repayment supplements from thousands of businesses. For this reason alone, the case will probably go to appeal, but it is vital for businesses that think they may be able to make a claim to review their records now and, if necessary, put in a protective claim before the four-year claim period expires.”


21st October 2012

Related News

Latest News