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The NFDA is encouraged by the recent ruling from the Court of Appeals on VAT refunds. The decision in favour of Littlewoods challenges HMRC’s position of paying only simple interest, rather than compound interest on VAT refunds. Many dealers have submitted claims because of this case and so Littlewoods’ victory is very welcome.
However, we are only at the beginning of a process that still has a long way to go. HMRC have appealed the decision, and the case is likely to end up before the Supreme Court.
If dealers have any questions or want to discuss these issues they are welcome to contact the NFDA.