Hotel owners urged to claim back VAT

Date: 13th August 2008

The owners of hotels in the UK have been urged by accountants to investigate if they are able to reclaim VAT dating back as far as the 1970s.

Tax consultancy KPMG said that hotels that have been involved in the conferencing industry could be entitled to claim back significant amounts of VAT.

Previously, HM Revenue & Customs (HMRC) would have turned down the claims, citing a three-year capping rule.

However, KPMG's director of indirect tax, Steve Kettle, stressed that "any hotel that has offered conferencing facilities" could benefit from rule changes and look to claim back some of the VAT.

He added that, though complex, a system was in place that would let the hotels make claims even if records were missing.

Mr Kettle explained that the claims had been made possible after KPMG negotiated directly with HMRC over the issue. He said that one client had managed to reclaim £300,000 already.

"However, anyone who thinks that they could be eligible to claim has to move quickly. This opportunity has a limited shelf life and will expire in March 2009," he concluded.