VSIM3300 - Official error case law: delayed payment of a repayment claim was not official error
This guidance deals with interest matters in respect of prescribed accounting periods starting on or before 31 December 2022. Interest matters with effect from 01 January 2023 are dealt with under Finance Act 2009.
Please see Compliance Handbook page CH140000 onwards to find the new interest rules guidance.
Walk the Walk in Action Ltd v HMRC Commissioners, 2009 UK FTT 186 (TC), TC00141
A charity reclaimed input tax of more than £200,000 for the period ending 30 June 2006. HMRC considered the claim excessive and issued an assessment to recover some of the tax. Following correspondence with the charity’s accountants, HMRC agreed to repay some of the disputed tax.
The charity claimed statutory interest which was rejected and the Tribunal dismissed the charity’s appeal. The Tribunal found there had been no ‘official error’ observing that the repayment had been late because the charity had been dilatory in responding to enquiries from HMRC.