On November 1st the Supreme Court delivered a final judgement on the long-running case between Littlewoods and HMRC. That case was heard at the Supreme Court in mid-July.
The case related to whether or not over-payments of VAT made by Littlewoods to HMRC, and then refunded by HMRC, should attract simple or compound interest in addition to the capital refunded. The difference to Littlewoods being nearly £1 billion.
The Littlewoods case referred to a number of prior UK & EU cases that it felt showed precedent supporting their case.
The Nov 1st 2017 Supreme Court judgement sided against Littlewoods.
It confirmed that the law in the UK has always been totally clear that interest paid and demanded by HMRC has always been simple interest and not compound interest. It also confirmed that there are no EU laws that override UK laws in regards of payments made by or requested by sovereign government tax agencies.
At LTAG we see this as yet another high profile example of where the law courts do enforce the word of the law where it is abundantly clear what the law says.
We believe the LTAG case is similarly binary. HMRC are, or are not in time to recover repayments made according to statutory limitations.