Flint Bishop

More than £100m in unclaimed VAT

Pictured above: Jason Croke

 

UK businesses could recover an estimated £100m in EU tax refunds - but are failing to do so because they believe the process is complex and bureaucratic, according to one of the West Midlands' leading VAT experts, Jason Croke of Haines Watts chartered accountants.

Businesses that carry out any operations or activities in the EU should find out if they could be one of 40,000 companies each year eligible to receive a VAT refund.

The window for claiming has been extended to 31st March 2011 giving companies more time to submit their claims.

The process has also been simplified, with applications being accepted in English since January this year.

Jason Croke, regional VAT consultant at the Birmingham office of chartered accountants Haines Watts, said businesses could claim VAT back from a number of transactions, including attending conferences abroad, working abroad, or visiting an EU-based parent company.

"The average claim we see is around £5,000 - not a small amount. HMRC estimates that 40,000 companies each year are eligible for EU tax refunds, so there is potentially more than £100m to be reclaimed.

"With the extension of the application period, and modifications made to the process, businesses really should take advantage of this opportunity to claim back considerable amounts of money," he said.

Businesses that have incurred EU VAT on their activities in EU member states during the calendar year 2009 have until 31 March 2011 to submit their application for a potential tax refund.

For more information on Haines Watts, please visit their website here: www.hwca.com

 

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Article published by Midlands Business News on 14 October, 2010

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