Three-year limit applies

The taxpayer was a farmer who had been VAT-registered since 1983. She did not file her returns for the periods 03/02 and 06/02 leading to HMRC issuing central assessments totalling £64 527.

She paid £59 356 towards the amount in August 2006 and eventually submitted returns for the two periods in January 2009.

It was later calculated that she had overpaid VAT by £55 550 but the Revenue refused to repay the sum under VATA 1994 s 80(4) on the basis the assessments could not be changed because they were out of time.

The taxpayer appealed.

The First-tier Tribunal noted that the four-year cap came into effect on 1 April 2009 before which a three-year limit had applied. In this instance the central assessments had been issued in February 2005 meaning a claim for credit had to be made by 31 March 2008.

The...