VAT SERVICES
(scotland) Limited
  • 0141 636 9353
  • 0141 636 9490
  • 0141 636 9492

The long-awaited case involving Taylor Wimpey did not see any progress being made but still gives housebuilders an opportunity to submit protected input tax (VAT) claims.

It is reported that Taylor Wimpey has a potential VAT claim in excess of £60 million. There are also a number of other cases which are stood behind this lead case, with many more cases expected to do the same.

Taylor Wimpey made a claim for a refund of input tax it had incurred on white goods and carpets it had installed in new-build homes since 1973.

The VAT recovery was blocked and one of Taylor Wimpey's arguments was that the 'block' was unlawful under EU VAT legislation and that the goods should be incorporated within the zero-rated house sale.

The First-tier Tribunal ('FTT') determined that the input tax block specifically relating to the construction industry was 'probably' unlawful and, as the case moves on, there appears to be a lot of progress still to be made, with the case likely to proceed through the Courts all the way to the ECJ.

In the meantime, housebuilders will continue to be challenged by HMRC in blocking input tax recovery on such items such as refrigerators, freezers, combined fridge-freezers, washing machines, tumble dryers, washer dryers, dishwashers, ovens, hobs, extractor hoods, microwave ovens, carpets carpet tiles and underlay etc.).

Consequently, housebuilders should consider making a retrospective protective VAT claim. This action will ensure the input tax which housebuilders incur on white goods and carpets are protected for when each VAT period goes out of time, whilst the Taylor Wimpey case continues.

Who is potentially affected?

  • Housebuilders / House Developers.

How can VAT Services (Scotland) Ltd help you?

  • Assist affected businesses in reviewing their own input tax situation and the preparation and submission of protected claims to stand behind the leading Taylor Wimpey case.

Contact us

Should you wish further information on the above, please do not hesitate to contact Gary using the details outlined below.

 

Gary Moore
Direct line 0141 636 9353
Mobile 07812 061 582
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