Following a Court of Appeal decision, HM Revenue & Customs has been forced to consider repayment claims for over-declared output VAT on sales for the period prior to December 1996, subject to an appeal to the House of Lords.
Customs & Excise had previously brought in a three-year time cap to restrict repayment claims by opticians and other traders whose supplies were deemed to be a mixed supply.
Marc Bennett, a partner in chartered accountants AEL, which specialises in VAT and tax advice, said: 'Although this is extremely good news on the surface, opticians will need to have retained their original books and records relating to that period. Furthermore, HMRC will only make repayments if the taxpayer first signs an undertaking to reimburse Customs, including interest, if the judgement is eventually overturned in the House of Lords.'
He added that all opticians who think they are entitled to make a further claim should seek professional advice, as each case needed to be viewed on its own merits.
HMRC said in a Business Brief: 'Pending the outcome of the appeal to the House of Lords, HMRC will give effect to the Court of Appeal's judgement for those who wish to make a claim, under the terms of this Business Brief, which includes a requirement to repay, with interest, in the event that this judgement is overturned.'