Compound interest on VAT claims?
Some businesses claiming retrospective VAT refunds might be able to claim compound interest on the sums repaid, following the Court of Appeal’s decision in the direct tax Sempra Metals
case. It might be possible to argue that previously settled claims should be revisited but this is unlikely to be cost effective as it will be highly contentious and, therefore, time consuming and expensive.
Insurance and outsourcing – extended period of uncertainty?
Insurers and businesses providing "outsourced" services to them may be facing an extended period of uncertainty about the VAT treatment as the publication of Customs’ views on the UK implications of the ECJ decision in the Arthur Andersen & Co case (now Accenture) has been delayed by the election. Despite their delay, businesses involved with this kind of work need to consider their position as early as possible so that they are in a position to move quickly when there is any clarification.
