Manchester United football club is the latest organisation battling HMRC over compound interest on VAT.
The club has begun legal action in a bid to recover more than £300,000 in backdated payments relating to VAT payments on its stock market flotation in 1991. HMRC has already refunded £61,000 to the club in VAT and ‘simple interest’, but bosses are claiming compounded interest is still owed.
“This case is the tip of the iceberg and thousands of businesses could have a case for claiming compounded interest on their VAT refunds,” warned Rachel Murphy, head of tax at accountancy firm Hurst.
The Manchester United case follows a recent High Court victory by retailer Littlewoods, which successfully pursued £200m in backdated repayments from HMRC...
About Gina Dyer
I've been a journalist for four years, writing on a wide variety of topics from business and finance to travel, culture and celebrities. I began my career as an editorial assistant for Palladian Publications, a B2B publisher specialising in technical magazines for professionals in primary industries. I later moved into consumer magazines as a staff writer for French Magazine, a monthly travel publication aimed at Francophiles, and was part of the launch team for The Traveller in France, a quarterly magazine produced for the French tourist board. I was also a regular contributor to online travel portal Homesworldwide.co.uk, and later worked with customer publishers Future Plus as a freelance production editor, before joining Sift Media in January 2009. I am currently Deputy Editor of AccountingWEB.co.uk.