BUSINESSES are being reminded that they have a few weeks left to reclaim VAT refunds.

The deadline for submitting a claim to HM Revenue & Customs (HMRC) is March 31. Companies can reclaim money for input VAT not claimed before May 1, 1997, and for output VAT over-declared in the period before December 4, 1996. In fact, claims can go as far back as 1973, when VAT was introduced.

Jane Moses, of the tax department at PricewaterhouseCoopers LLP in Newcastle, said: “Virtually every longstanding business could have at least one potential VAT claim and many taxpayers who initially believed they could not make a claim have successfully gone on to do so. In the current economic climate, when cash flow is stretched, every business should examine if they have reason to submit a claim.”

The Government introduced legislation in 1996 and 1997 limiting claims for overpaid or under-recovered VAT to three years. But a year ago, the Lords ruled in the case of Fleming and Condé Nast that the UK’s implementation of this three-year capping breached European Commission law because no allowance had been made for a transitional period in the UK legislation.

The Lords also said HMRC had failed to respect “legitimate expectations” of taxpayers who could have claimed before time limits were introduced.

The ruling gave taxpayers a window of opportunity to submit claims.