HM Revenue & Customs has issued a business brief inviting taxpayers to submit claims.
Peter Jones, partner at motor retail accountancy firm Trevor Jones, says this will be “of particular interest” to clients who were unsuccessful during the initial round of claims relating to demonstrators.
Dealers can submit a new claim if their claim has already been submitted and paid, but was capped for a three year period, or if they have overpaid VAT prior to December 1996 and not previously allowed to claim due to the capping provisions.
However, Jones warns: “The refund will include interest, possibly at the compound rate, which could potentially double the claim. Unfortunately, the business brief states that any refund, plus additional interest, will have to be paid back to HM Customs if it wins the lead cases, which will be heard in the House of Lords next year.”
Trevor Jones acted for one in four of the demonstrator claims submitted and claims to have negotiated settlements for 75% of cases. It now aims to reopen claims that were rejected.