New facility to review VAT ‘Fleming’ Claims
As you may be aware there was a landmark VAT case known as ‘Fleming’ which was decided early last year in the House of Lords. The case concerned the legal validity of the introduction of VAT capping deadlines in May 1997. In a landmark decision, the House of Lords found that a time-limit for submitting valid VAT claims had not been properly implemented at the time. Prior to May 1997 there was no concept of the ‘three year cap’.
HMRC has no confirmed that. following the decsion in this case, they are introducing a facility for businesses to re-examine the period from the introduction of VAT on 1 April 1973 through to 1 May 1997 and to resubmit valid VAT claims. This opportunity specifically relates to both
· output tax overpaid or overdeclared in accounting periods ending before 4 December 1996
· input tax in respect of which the entitlement to deduct arose in accounting periods ending before 1 May 1997.
The deadline for making claims is 31 March 2009.