UK Hotels could be eligible to reclaim thousands of pounds in VAT dating back as far as 1973, according to tax consultancy KPMG.
The firm is advising hotels who have been involved in the conference industry to review their situation to see if they are entitled to claim VAT, which previously HM Revenue & Customs (HMRC) would have denied under a three-year capping rule.
Steve Kettle, director of indirect tax at KPMG, said: "Any hotel that has offered conferencing facilities, including hiring rooms out for functions such as weddings, should be eligible to claim under these changes. As claims can go as far back as 1973, the value of recovery could be significant.”
Kettle added that although the procedure involved some complexity, hotels would be able to proceed with claims even in the absence of records.
But he also warned that anyone thinking they could be eligible to claim had to move quickly, as the opportunity had a “limited shelf life” and would expire in March 2009.
KPMG has already successfully achieved repayments for clients following negotiations with HMRC. In one case, a hotel received a claim for £300,000 for a three-year period.
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By Gemma Sharkey
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