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Statutory requirements for output tax repayment claims

The taxpayers traded as a car rental and self-drive company (BAS) and a long-term hire company (BAC). In March 2009 the companies’ adviser wrote a letter claiming repayments of output tax for each taxpayer.

HMRC said the letter did not constitute a claim because it did not satisfy the statutory requirements in VAT Regulations SI 1995/2518 reg 37.

The First-tier Tribunal allowed the BAS claim on the ground that it stated the sum claimed how it had been calculated and referred to the company’s accounts. However because the equivalent information was not included for BAC the tribunal dismissed its appeal.

HMRC and the taxpayers appealed.

Looking first at BAC Mr Justice Warren in the Upper Tribunal said VATA 1994 s 80(6) required a claim to be made in ‘such form and manner’ as prescribed.

The prescription...