Local accountants and business advisers Foxley Kingham are notifying their clients of a query relating to the taxation of gaming machines which could, if a test case from the UK is successful, net them a substantial tax refund.
This news comes with a warning, however: If the VAT payments you have made on earnings for a gaming machine are found to have been unfair, you will only be able to recover the maximum amount if you lodge your claim by 31 st August 2006.
The situation has arisen following the Treasury’s decision in December 2005 to end discrepancies in the VAT liability of different types of gaming machines by making them all liable. (Previously some were, whilst other, similar machines were exempt). This has prompted claims that prior to the rule change, the system was unfair to those whose machines were considered VAT liable, and that any additional tax paid as a result of the discrepancy should be refunded.
The European Court of Justice recently ruled in favour of such a claim by a German gaming machine operator, and despite differences in the relevant domestic legislation, it is possible that a case originating here may go the same way.
With adjustments for inflation the amount owed could be considerable, but the longer you wait before submitting a claim, the less you will be able to recover…
Steve Mason, Managing Director and advisor to a number of licensed premises to whom the news applies, had the following advice:
“There is no guarantee that the case will be successful, however if you wait until the matter is resolved (which, we are told, could be anything up to 5 years) it will be too late to recover the overpayment. That’s why, if you think you may be entitled to a refund, you need to act now. We will, of course be monitoring the situation and keeping clients informed of any developments”
Making a claim against HMRC costs nothing and can, if successful, reap substantial rewards.
If readers would like to find out more, Foxley Kingham has produced a factsheet which explains the situation in more detail, with useful information on how to calculate a claim and what the process entails. For your copy, please contact Lisa Taylor on 01582 540800, or email your details to lisa.taylor@fkca.co.uk, including name, address, and telephone number (optional).
