HM Revenue & Customs (HMRC) has traditionally blocked businesses from reclaiming overpaid VAT after 3 years, but a recent European Court of Justice ruling has opened a time limited door to claims which ends on 31 March 2009.

Following HMRC’s January 2008 defeat in the cases of Fleming and Condé Nast concerning a three-year cap on VAT adjustments, HMRC gave businesses until 31 March 2009 to reclaim VAT overpaid between 1973 and 1997.

With VAT reclaimable from almost 40 years ago, historic claims are likely to be based on estimates as detailed records on expenditure are unlikely to have survived.

VAT is a complex issue, but in the current economic climate few businesses can afford to miss out on what could be a substantial rebate and it is certainly worth seeking expert advice on preparing a claim before the opportunity is lost.