John Wilkins (Motor Engineers) Limted and others v Commissioners for Her Majesty’s Revenue and Customs

24 Sep 2009

In the first case heard in the new Upper Tier Tribunal (Tax and Chancery Chamber), the Tribunal, Warren J presiding, dismissed appeals brought by motor traders seeking compound interest from the Commissioners under s 78 VATA 1994 in respect of overpayments of VAT. The Tribunal held that the time to bring such an appeal ran from the date of the Commissioners’ decision to pay simple interest under s 78, not from the date of the Commissioners’ refusal to pay additional interest, so the appeals were brought out of time and time would not be extended.  As to the substance, the Tribunal held that s 78 could not be interpreted to allow an award of compound interest based on the judgment of Henderson J in F J Chalke Ltd and another v Revenue and Customs Commissioners  [2009] EWHC 952 (Ch); any such award would have to be sought by a claim for restitution at common law.

Peter Mantle and Philip Woolfe appeared for the Commissioners.

For the Upper Tier Tribunal decision, please click here.

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Peter Mantle
Philip Woolfe