My client deregistered from VAT earlier this year. When he de-registered, he had an outstanding invoice to a supplier dated June 2003 which he had been disputing and had gone to legal process. He has subsequently lost and had to pay in full (in May and June of this year), and wants to reclaim the VAT amounting to some £6k.
The form refers to claims only being valid up to 3 years after the tax point, however, I recall seeing an article which claimed that the 3 year cap was under challenge.
It seems anomolous that the rules now require you to repay input tax if you have not paid the supplier within 6 months of the due date.
Can anyone advise if this has been established and on the facts whether there is any argument in support of claiming now.