By Stuart Sheldrick, LB Group

August 2009

Chartered accountants and business advisers, LB Group, is warning that, following a recent Court of Session ruling, tax payers need to keep tight rein on aging VAT claims.

The fate of millions of pounds worth of claims was riding on this case, according to LB Group director, Stuart Sheldrick. He said this failed case represented a last ditch attempt to obtain repayments on overpaid VAT. As a result, HM Revenue & Customs is encouraging claimants to withdraw or proceed to a hearing, where cases had been on hold pending the outcome, he said.

Mr Sheldrick explained, "Scottish Equitable brought a case demanding that 1996 legislation capping the retrospective on VAT claims be overturned. Their case hinged on the fact that no transitional period had been introduced at the time.

"Their case was overturned by the Court of Session, and many people believe that this is now the end of the road for appealing this unpopular legislation," he added.

"More than ever now, it is going to be important to keep a close eye on VAT receipts and outgoings. No longer can anyone afford to think that they will be able to make retrospective claims beyond three years," he said.

Contact: Stuart Sheldrick, LB Group, 129 New London Road, Chelmsford, CM2 0QT. Tel: 01245 254780. Web: www.lbgroup-chelmsford.com. Email: stuart.sheldrick@lbgroupltd.com.