HMRC's Revenue & Customs Brief 07/08 deals with the implications of the recent House of Lords' decisions in the cases of Michael Fleming (t/a Bodycraft) v HMRC and Condé Nast Publications Ltd -v- HMRC.
The case disapplied the three-year time limit for input tax claims in respect of which the entitlement to deduct accrued before 1 May 1997.
HMRC state they consider that the terms of the judgment also apply to claims to recover VAT overpaid or overdeclared in accounting periods ending before 4 December 1996.
As a result, claims may now be made for:
- 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
Claims must be submitted to HM Revenue & Customs, Fleming Claims Team (Leeds), Queens Dock, Liverpool, Merseyside L74 4AA.
Telephone enquiries on such claims can be made to the Claims Team on 0113 389 4432.
HMRC state that claims relating to accounting periods ending on or after 4 December 1996 (for output tax) or 1 May 1997 (for input tax) are capped at three years.
The department also advises that claimants who have had their claims paid on condition that they provide an undertaking to repay in the event that the House of Lords found in favour of HMRC, are released from those undertakings and that no further action is required by them.
HMRC state they are still considering the full implications of the judgment and will make a further announcement in due course.
