UK News: Taxpayers to lose out on billions of VAT interest

Becky

VIP Member
Joined
Aug 26, 2011
Messages
550
Reaction score
55
Accountancy Age said:
Taxpayers are unlikely to be able to seek billions of pounds in compound interest from the taxman from overpaid VAT, according to senior European opinion.

The advocate general in the European Court of Justice has decided that overpaid VAT by UK taxpayers, due after HMRC breached European law, would only require simple interest applied to it.

Taxpayers had argued that the overpaid tax, some of which dates back to 1973, should be subject to compound interest.

However, advocate general Trstenjak said that taxpayers would be unlikely to be able to claim compound interest when delivering opinion on the Littlewoods case.

The advocate general's opinion is usually followed by the judges in the European court
The use of simple interest calculations rather than compound interest could have a massive impact for businesses contesting historical liabilities.

The full article can be read on Accountancy Age.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

Forum statistics

Threads
11,754
Messages
27,800
Members
21,756
Latest member
Kangwa10

Latest Threads

Top