Littlewoods VAT battle rages on | AccountingWEB

Littlewoods VAT battle rages on

The European Court of Justice has referred a long-running battle between Littlewoods and HMRC over VAT interest repayments back to the UK’s High Court.

The owners, Sir David Barclay and Sir Frederick Barclay, are suing HMRC for failing to add compound interest when it refunded the retail group excess VAT payments going back more than 30 years.


» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

leshoward's picture

Compounding the Problem!

leshoward | | Permalink

The Treasury's main concern is not the legal argument, but the potential cost to the public purse. If Littlewoods are successful, many other claims will be submitted. The sums will be into billions.

The same has to be said for the take-away food case, due to be heard at the Upper Tier Tribunal next week. The cost of the Treasury will also be measured in billions if the taxpayer is successful.

On the other hand, they could

jonbryce | | Permalink

On the other hand, they could charge compound interest on late payment of tax, based on the same principle, and that would make them a lot more money than they stand to lose.


justsotax | | Permalink

yep you can't help feeling that with the boot on the other foot and an effectively 'interest free' loan by hmrc to all the numerous companies who fail to pay corp tax/paye etc on time then i am not sure they will be so eager to argue that compound interest should be charged.


We're all in this ...

mikewhit | | Permalink

"The cost of the Treasury will also be measured in billions if the taxpayer is successful."

Didn't you mean to say "... if the hard-working taxpayer is successful."


philfromleeds | | Permalink

I think the government should send them to bed without any jam and bread tonight

need the funds    1 thanks

rayhelmke | | Permalink

littlewood clearly need some funds...

sooner littlewoods goes under the better imo


Vinoo | | Permalink

Littlewood received £268.2m interest on overpaid VAT. My understandinf is that HMRC would not pay any "interest" on overpaid VAT but it would be "Ex-Gratia" payment and so the compund element is not applicable.