VAT – Historic claims
HMRC have updated their internal guidance on dealing with historic VAT claims. The document title mentions only Fleming claims, however it will be of interest to any business that has made historic VAT claims.
The guidance is divided into 36 sections and includes details of the types of relevant claims for both input and output tax.
The deadlines for submitting these claims have now passed. The last major deadline concerned‘Fleming’ type claims expired on 31 March 2009. However there still remain a significant number of claims which are outstanding and this document will assist in understanding issues that may arise in discussions with HMRC. These issues can include looking at the way the claim was calculated, the accounting periods for which claims were made, checking the correct VAT rates and the evidence to support the claims.
HMRC will also look at invoking the issue of ‘unjust enrichment’ especially where payment of an original capped claim had been reduced. If the issue of unjust enrichment was considered in relation to an original claim and ultimately not used, HMRC have acknowledged that it is likely that that decision will also apply to the new claim.