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With credit issues facing companies across the country KPMG has warned that many are missing out on a window of opportunity to reclaim 24 years’ worth of overpaid or under-claimed VAT.

This follows a court ruling made earlier in the year allowing companies to reclaim overpaid VAT.

It is believed that the majority of claims range from £50,000 to several million, however many businesses unaware they qualify for these windfalls.

With the deadline for submission being the end of March next year and claims typically taking several months to compile and agree, companies risk running out of time to apply for refunds.

The opportunity for refunds relates to VAT either mistakenly overpaid or rebates that were under-claimed between 1973 and 1997.

Many businesses are unaware of the opportunity to claim rebates over this 24 year period. It stems from a decision in the House of Lords in January this year which said that the introduction of a “three year cap” on back-dated claims in 1996 was invalid in so far as it failed to include transitional arrangements for taxpayers making any claims relating to periods prior to May 1997.

Stuart Hindle, indirect tax partner at KPMG in the UK said, “the door is open for 24 years worth of VAT claims – from 1973 when the UK joined the EU to 1997 when the law was changed."

Many companies approached by KPMG about their eligibility to submit claims were previously completely unaware that the opportunity even existed – perhaps because 1997 is so far away.

According to KPMG, in some cases, these VAT rebates could make all the difference to a business’s survival as the credit crunch takes hold.

Hindle continues, “the sums at stake are often substantial: we have seen claims ranging from £50,000 to several million pounds. And this could make a huge difference to whether a business makes it through these difficult times or not. Because of the opportunity exists to go back so far, even small amounts that are under-claimed in any one year can be significant if it is extended back in time.”