HMRC v Our Communications Ltd

In HMRC v Our Communications Ltd (FTC/87/2012 – 26 November 2013) HMRC had denied a claim for the payment of a VAT repayment supplement on the ground that the claim for repayment had not been made in a return.

It was agreed between both parties that the taxpayer was entitled to a VAT credit and HMRC accepted that on a literal interpretation all the conditions of VATA 1994 s 79 were satisfied. However HMRC argued that s 79 should be interpreted as applying only to claims made in returns.

This turned on the interpretation of the expression ‘return or claim’ in s 79(2A).

The Upper Tribunal found in favour of HMRC on the basis:

• The whole scheme of s 79 revolves around the return.
• It would be very odd for the words ‘return or claim’ in s 79(2A) to...