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compound interest

The long-running Littlewoods case looks set to continue, with HMRC seeking leave to appeal the latest decision in favour of the catalogue-based retailer.

The company and several similar businesses overpaid a total of £204m in VAT on mail order sales commissions between 1973 and 2004, and later received a repayment with simple interest – which sparked litigation seeking compound interest.

HMRC aims to stay claims for compound interest

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Tax tip: Employee share awards and internationally mobile employees in the UK Readers’ forum: Tax treatment of compensatory payment Readers’ forum: Extending a business trip for private holiday Readers’ forum: Difficulty of trying to prove a negative Readers’ forum: Is there VAT on late payment interest or is it extra rent?

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Deadline dates for October 2025 Creative industries receive record £2.4bn tax relief Time to pay extended to simple assessment debts August Employer Bulletin published Temporary non-residents’ tax returns in focus

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Deadline dates for October 2025

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A company has a life for the purposes of the ten-year charge No evidence that input tax dispute appeal would fail Undisclosed property income was deliberate Preliminary hearing on issues within scope of appeal Role of Martland and Katib in late appeal request

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Deadline dates for October 2025 Creative industries receive record £2.4bn tax relief Time to pay extended to simple assessment debts August Employer Bulletin published Temporary non-residents’ tax returns in focus

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