Deadline looming for old VAT claims

Small businesses could be missing out on claiming VAT rebates over a 24-year period.

Many small businesses and enterprises are unaware that the deadline is looming for VAT reclaims over the period between 1973 and 1997.

Companies in the UK have until 31 March 2009 to reclaim tax that they may have overpaid during this period.

Stuart Hindle, indirect tax partner at KPMG in the UK, said: "Many companies whom we have spoken to about their eligibility to submit claims were previously completely unaware that opportunity even existed - perhaps because 1997 is so far away."

Many VAT claims can take months to agree, with older documents often being difficult to recover, so KPMG has advised that small business owners file for a rebate as soon as possible.

Mr Hindle added: "The sums at stake are often substantial: we have seen claims ranging from £50,000 to several millions of pounds. And this could make a huge difference to whether a business makes it through these difficult times or not."