Letter not eligible

The taxpayer company filed VAT returns for the periods 1/06 and 2/06 claiming repayment. It later realised it had under-claimed input tax so submitted voluntary disclosures by letter to claim a repayment of nearly £1.5m.

HMRC repaid the tax and included a supplement in respect of the amount claimed in the returns but not for the sum claimed by letter on the basis claims made by means of voluntary disclosure were not eligible for repayment supplement.

The taxpayer firm appealed saying repayment supplement was not limited to claims on a return according to VATA 1994 s 79. It also applied to claims made in other ways including voluntary disclosure.

The First-tier Tribunal allowed the taxpayer’s appeal.

The matter continued to the Upper Tribunal which said the key provision was VATA 1994 s 79(2) with its relevant conditions for repayment supplement.

The...