Manchester United launch legal case against Taxman
Wed 30th Jun 2010 | Money & Finance
Premier League side Manchester United is reportedly part of a group which has launched a legal case against the taxman challenging compound interest claims from VAT payments which could open the "floodgates" for other businesses.
According to a report by Accountancy Age, Manchester United is trying to recover more than £300,000 in backdated compound interest from HMRC.
The club has already received £61,000 in VAT and "simple interest" said accountancy firm Hurst.
Rachel Murphy, head of tax at Hurst, the case was the tip of the iceberg. "Thousands of businesses could have a case for claiming compounded interest on their VAT refunds," she said.
“There’s a lot at stake for businesses large and small and I’m confident we’ll see more claims as businesses do their best to recoup interest. Businesses must make sure their accountant reviews their entire VAT position to check what is owed.”
The Premiership side is one of a group of businesses to launch the petition at the High Court.
Manchester United’s claim apparently relates to money it believes is owed from being wrongfully charged VAT on its £18m stock market floatation in 1991.
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