Last checked at 28 Jan 2020 16:20
IntegraFin Holdings plc
HMRC VAT Notice
For Immediate Release | 28 January 2020 |
IntegraFin Holdings plc
HMRC VAT Notice
Late yesterday afternoon IntegraFin Holdings plc (the "Company") received notice from HMRC that Integrated Application Development Pty Ltd ("IAD")'s membership of a UK VAT group is terminated with effect from 16 July 2016. The consequence of the exclusion of IAD from the UK VAT group is that the services provided from Australia would be subject to reverse-charge VAT.
The Company included IAD in the UK VAT group having taken specialist advice and followed that advice to ensure that the inclusion of IAD's branch in the UK VAT Group was in accordance with the relevant laws. Therefore, it is likely that the Company will challenge HMRC's decision.
The financial implications of this notice remain uncertain pending the outcome of any challenge. HMRC's notice states that the VAT due since July 2016 will be approximately £4.3m and that going forward there would be an additional VAT charge of approximately £1.4m annually. The Company does not yet know whether HMRC will charge interest and/or a penalty.
The content of the communication is not what we were expecting. The Company is considering its response in consultation with its advisers.
This notice may contain inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.
LEI Number: 213800CYIZKXK9PQYE87
Enquiries
Alexander Scott +44 (0)20 7608 5449
Ian Taylor +44 (0)20 7608 4900