An appeal regarding interest and repayment failed in the upper tribunal as it did not disclose any grounds for appeal.
HMRC failed to repay VAT on a return within the time limits. As a consequence, the business became entitled to repayment supplement and interest.
The first tier tribunal ruled that:
- interest was payable at base rate plus 1.75%, and
- the amount of repayment supplement may be deducted from the interest.
The business held that interest was payable at base rate plus 2.55% and that the repayment supplement was not deductible.
The dispute related to Value Added Tax Act 1994 s84(8).
On the interest rate, the law gives the tribunal wide discretion. There was no basis to change that discretion.
On the latter point, the upper tribunal could find no reason to deduct the repayment supplement from interest due. The first tier tribunal had acted unlawfully in so deciding. This element of the appeal was allowed.
The case report can be downloaded from here.
Emblaze Mobility Solutions Ltd. [2018] UKUT 0373 [18.12]