Back?
Summer 2008 Newsletter


Content

After U, Gordon?

Ups And Downs

Gift Horse

What A Relief!

Second Thoughts?

Last One Out...

Penalty Shoot-Out

Ain't Necessarily So

Going, Going, Gone

Papers In Order?

Death And Taxes

Passing The Buck

Hire Higher

Back Taxes, Taxes Back

Options Open

Extortion?

Sick Note

Cats And Dogs

Old-Fashioned Money

I Thee Endow?

Mother's Rights

Countdown

Nowhere To Hide

Back Taxes, Taxes Back


In 1996 Customs tried to introduce a rule to restrict claims to recover overpaid VAT to the last three years' worth. That's been held to be a reasonable rule going forward, but they tried to apply it to existing claims at the time: before they announced the "cap", you could reclaim VAT overpaid all the way back to the introduction of the tax - the next day, you had instantly lost the right to most of that.

At the end of a large number of arguments that have been running ever since, the House of Lords and the European Court have both held that this was unlawful behaviour by the Government. People's rights can't be taken away arbitrarily without giving them a last chance to claim. HMRC have now accepted defeat and are allowing that last chance - although for many people it is a little late. If you still have the paperwork and the energy, you can claim up to 31 March 2009 for output VAT overpaid up to 4 December 1996 or input tax underclaimed up to 30 April 1997.

It's all a long time ago, but if you think this might affect you - for example, if you made a claim in the past and the cap was applied to it - we will be happy to advise you.