HMRC has issued a statement following a Court of Appeal decision concerning the Rank Group on 30 October 2013 relating to VAT on gaming machine takings.
In 2009, a ruling led to hundreds of pub operators and licensees receiving tax rebates on overpaid VAT from the taxman.
According to the Government department all businesses that made a valid claim and received a repayment were advised that in the event of HMRC being successful in litigation, recovery action would be taken.
A spokesman for HMRC said: “The Court of Appeal agreed with HMRC’s arguments regarding the taxation of multi-terminal betting machines.
"These will now fall within the definition of gaming machines, and will be taxed in the same way. Companies that claimed a VAT rebate will be asked to repay the money received. All companies were informed when claiming that this would be the case if HMRC won the appeal, which is in line with HMRC’s standard practice.”
Write to businesses
HMRC said it will write to every affected business over the next few weeks, setting out the amount it received. The letter will include guidance about how to repay the money. In the event of a business being unable to make the full payment by the due date, they should contact HMRC.