Home
 » ISP News » 
Sponsored

BT Reopens 10 Year Old Case – Demands HMRC Repay Millions

Monday, March 30th, 2020 (4:42 pm) - Score 37,463

Broadband ISP and media giant BT appears to have successfully lifted a stay against a decade old restitution suit in the UK High Court for Value Added Tax (VAT) refunds, which originally claimed that HM Revenue & Customs (HMRC) owed them £91.8 million plus interest in overpaid tax.

The situation began in early 2009 after BT wrote to HMRC making a claim for hitherto unclaimed VAT on “bad debt relief” for the period 1st January 1978 to 31st March 1989, which arose because BT had accounted for the standard rate of VAT on its supplies to customers but, in some cases, those customers had failed to pay the operator (either in part or at all) for its supplies.

Naturally BT wanted a refund and complained that, at the time, the law wrongfully said that debtors had to be forced into insolvency before the VAT could be clawed back. HMRC refused to repay the disputed amount and BT ended up appealing before the First-tier Tribunal (Tax Chamber) against HMRC’s decision (see details of the last case here).

Long story short. The case ended up in a sort of legal limbo, until 2017 when HMRC made a legal application to strike out BT’s FTT case. According to The Register, BT then asked the High Court last August 2019 to lift the stay on its case there and Mr Justice Fancourt has now done exactly that.

At this point we note that, before everything was put into limbo, the parties had agreed a figure for the dispute of £65.2m excluding interest. However, were BT ultimately to succeed, that figure would need to be adjusted to take account of the fact that they had claimed bad debt relief in respect of the VAT when accounting for corporation tax.

In the meantime BT’s appeal won’t be able to make any further progress because the court will first need to make a decision on HMRC’s long running strike-out application. BT would certainly benefit from some extra cash right now (the past couple of years have been particularly difficult for them), but we can’t see this one going anywhere too quickly during the current COVID-19 crisis.

Leave a Comment
4 Responses
  1. Avatar joe

    That they have revived a case for taxes from 1978 to 31st March 1989 says everything about the dysfunctional legal system.

  2. Avatar P walker

    You wanna stop ripping your customers off

  3. Avatar G Goldiing

    What about the past emplyees like me are we not due refunds also ? If so good.

  4. Avatar Tony Farrow

    BT a totally useless company with far , far to much monopoly of communications in the UK. Even before this virus started I had terrible issues with Broadband as of today still not fixed. Now work from home a joke. So far last year upto today I have had over 19 engineers out . BT CEO works a three day week
    Just no accountability.
    Where’s my refund as no broadband band for over 4 weeks still no broadband
    BT lie deceive commits so many counts of incorrect billing there’s no annual signed accounts of customer contracts they each year put up customer bills but still no sign off by customers
    Legal or illegal everyone knows it can’t be right
    So government get involved Now
    Hit BT with a huge fine not penny’s but millions
    I stopped my direct debits I bet they call me in two days
    If we all stop direct debits for useless service hit them in the pockets take care people .

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Superfast ISPs
  • Hyperoptic £19.95 (*22.00)
    Avg. Speed 50Mbps, Unlimited
    Gift: Promo Code: HYPER20
  • NOW TV £22.00 (*40.00)
    Avg. Speed 36Mbps, Unlimited
    Gift: None
  • SSE £22.00
    Avg. Speed 35Mbps, Unlimited
    Gift: None
  • xln telecom £22.74 (*47.94)
    Avg. Speed 66Mbps, Unlimited
    Gift: None
  • Vodafone £22.95
    Avg. Speed 35Mbps, Unlimited
    Gift: None
Prices inc. Line Rental | View All
The Top 20 Category Tags
  1. BT (2690)
  2. FTTP (2529)
  3. FTTC (1738)
  4. Building Digital UK (1677)
  5. Politics (1571)
  6. Openreach (1537)
  7. Business (1352)
  8. FTTH (1274)
  9. Statistics (1186)
  10. Mobile Broadband (1154)
  11. Fibre Optic (1033)
  12. 4G (997)
  13. Wireless Internet (984)
  14. Ofcom Regulation (983)
  15. Virgin Media (960)
  16. EE (664)
  17. Sky Broadband (648)
  18. TalkTalk (631)
  19. Vodafone (623)
  20. 5G (457)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact