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HMRC internal manual

VAT Refunds

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Late claim for input tax: Definition of a claim: When is a claim a new claim

In its decision in University of Liverpool (VAT Tribunal decision 16769); [2001] BVC 2088, the VAT & Duties Tribunal described a completed claim as:

“… a claim which:

(a) has been met in full by the Commissioners; 

(b) has been met in part by the Commissioners and the time limit for appealing against the rejection of the remainder prescribed by rule 4(1) of the VAT Tribunals Rules 1986, as amended, has expired; 

(c) has been met in part by the Commissioners, the taxpayer has appealed against the rejection of the remainder, his appeal has been determined either by the tribunal or a court and the time limit prescribed for appealing against that determination has expired or the appeal has been compromised; 

(d) has been rejected in full by the Commissioners and the time limit for appealing against that rejection prescribed by rule 4(1) of the VAT Tribunals Rules 1986, as amended, has expired;

(e) has been rejected in full by the Commissioners, the taxpayer has appealed against that rejection, his appeal has been determined either by the tribunal or a court and the time limit prescribed for appealing against that determination has expired, or the appeal has been compromised."

Thus any claim that follows a completed claim is a new claim. This is important where the follow-up claim is made out-of-time.

It is important to note that a claim is defined by the issue upon which it is based. Thus if Alpha Ltd’s claim on 30 June 2011 was for input tax that it had failed to deduct in relation to a share issue and the company made another claim on 24 October 2011 for input tax that it had failed to deduct in relation to business entertainment of overseas clients, the claim made in October is not an amendment to the June claim but is a new claim and can only go back to the accounting period ending 31 December 2007.

Once a claim has been paid, in part or in full, and there has been no appeal or any appeal has been determined, that claim is completed and any further claim in relation to those same accounting periods is a new claim.

The decision in University of Liverpool was later endorsed by the Tribunal in the decisions in John Martin Group (VAT Tribunal Decision 19257); [2006] BVC 4025, The London Institute (now known as the University of the Arts, London) (VAT Tribunal decision 19362); [2006] BVC 4045 and The Medical House Plc (VAT Tribunal decision 19859); [2007] BVC 4037.