Tax Rebates & Refunds

£9m tax rebate windfall for dog food firm

September 17, 2012
Posted in Tax Rebates — Written by Geoffrey

A dog food company based in Suffolk is expecting to receive a mammoth tax rebate from HM Revenue & Customs (HMRC) after it discovered that it was paying VAT unnecessarily for nearly 30 years.

Skinner’s dog food company, based in Stradbroke, discovered recently that between 1980 and 2009, it was paying VAT on dog food even though it didn’t necessarily need to. This is because the food was for working dogs, rather than pets, which could make the company exempt from paying VAT on its earnings.

The owner of the company, Roger Skinner, has previously put in two tax rebate claims to HMRC over the issue and these have both been refused. However, his latest claim has now been accepted, as tax tribunal judge Barbara Mosedale has ruled in the company’s favour.

HMRC officers will now review the case and the judge’s decision and decide whether to pay the tax refund to Skinner’s or to put in an appeal. If Skinner’s claim is successful, the company could receive a tax rebate windfall of as much as £9 million.

This case demonstrates the importance of businesses, as well as individuals, checking the tax they are paying on a regular basis. It could be that a sizeable tax refund is due.

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