VAT Update - Claiming back VAT from 1973-1997

Following the 2008 Budget, and a number of Court cases, the door has opened for many businesses and charities to recover VAT overpaid from 1973 to 1997.

H M Revenue & Customs (HMRC) have announced that this opportunity to reclaim remains until 31 March 2009. At the time of writing this article, there is one year left for businesses to identify, quantify and submit claims.

The biggest barrier to making a claim will be the lack of original accounting records.

Although HMRC have discretionary powers to accept alternative evidence, they have not made any specific announcement as to whether or not they will exercise such discretion in the taxpayer’s favour. In such circumstances, it will be worth seeking professional advice, and obtaining some indication from HMRC before incurring substantial costs in preparing a claim.

Where original records do exist, it will, of course, be much easier to have a claim accepted.

In all cases, make sure the claim is as accurate as possible.

Article written for Bytestart by Les Howard (VAT Consultant) - http://www.vatproblem.com/

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Sign Up! - Make sure you sign up to our FREE weekly newsletter for the latest tax news and advice for small companies. Posted April 14, 2008

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