Last checked at 21 Jun 2022 07:00
IntegraFin Holdings plc
HMRC VAT Notice
For Immediate Release | 21 June 2022 |
IntegraFin Holdings plc
HMRC VAT Notice
IntegraFin Holdings plc (''IHP'') issued a RNS on 28 January 2020 concerning HMRC's decision that Integrated Application Development Pty Ltd ("IAD")'s membership of a UK VAT group is terminated with effect from 4 July 2016. The consequence of the exclusion of IAD from the UK VAT group is that the services provided by IAD would be subject to reverse-charge VAT. Integrated Financial Arrangements Ltd (the "Company"), a subsidiary of IHP, requested a review of HMRC's decision. Yesterday the Company received notice from HMRC that it had completed its reconsideration and would uphold its original decision, which is subject to a further review.
In the event of an adverse decision, for the period 4 July 2016 to 30 September 2021 the potential VAT due would be £7.9m. The potential VAT due for the financial year ending 30 September 2022 would be £1.9m. There would then be a potential ongoing annual VAT charge.
IHP had previously disclosed in note 36 to its financial statements for the year ended 30 September 2021 a contingent liability for the potential payments to HMRC. The Company has taken, and continues to take, senior counsel's advice throughout this process.
The Company contests the findings of HMRC and now intends to require a review by an HMRC officer not previously involved with the matter.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("EUWA")) ("UK MAR")
LEI Number: 213800CYIZKXK9PQYE87
Enquiries
Alexander Scott +44 (0)20 7608 5449
Luke Carrivick +44 (0)20 7608 5463