Compound interest on VAT repayments?
Some businesses that have received interest on overpayments of VAT resulting from "official errors" may be able to claim compound, rather than simple interest. However, while compound interest claims may be possible in some circumstances, a claim for compound interest might lead to a challenge to simple interest paid already. We have identified and are working on ways to minimise this risk.
Insurance Companies and outsourcing
Insurance companies and outsourcers facing increased costs following the ECJ decision in the Arthur Andersen (Accenture) case should consider a response to HMR&C’s consultation document, which is to be released on 8 July. Customs recently confirmed that UK law would have to be changed and as a result many outsourced services that were previously VAT free will become subject to VAT
