VARs rally to CRN's VAT campaign
Readers back our attempts to highlight the problems of HMRC's VAT repayment process
Reader responses continue to pour in following the launch of CRN’s campaign to highlight the problems caused by HM Revenue & Customs’ (HMRC) VAT repayment process.
Newcastle-based trader Eurosel was classified as a telecoms and IT firm, despite specialising in pharmaceuticals and only selling a limited number of electrical goods. Managing director Jeffrey Jordan is convinced that this is the reason he is still awaiting a £280,000 VAT repayment from HMRC.
“I have been in business for 22 years and have always supplied due diligence to HMRC, but eight months ago my VAT was withheld,” he said. “I have been 100 per cent co-operative with HMRC and supplied it with more than 300 documents, but it is refusing to make a decision. I am all for stamping out fraud, but why tarnish everybody with the same brush?”
Scottish mobile phone trader Glasgow Data was caught up in a set of dawn raids last year, which the government body hailed as its ‘largest ever’ operation (CRN Online, 15 August).
Gian Hayer, director at Glasgow Data, told CRN his firm is owed about £800,000 from HMRC in VAT. He is considering taking his case to the European Court of Human Rights.
“Our VAT has always been paid on time,” he said. “Now we’ve let all our staff go and we are having to give up our offices this month. We haven’t even had an explanation from HMRC about why it is doing this.”
An HMRC representative told CRN it did not comment on individual cases.