black morse wrote:Ken, are you saying that the VAT money should not have been handed over to 'the supplier' but paid directly to HMRC? I'm just trying to get my head around what has happened. Is there anyway Jason, himself could be 'the supplier?
Details are unclear and vague, but from what I can gather, a major supplier charged VAT on their invoices, they shouldn't have done. The club paid the bills, including VAT which shouldn't have been charged. The club claimed the VAT back from HMRC on their VAT returns which they shouldn't have done (because it shouldn't have been charged/paid), HMRC now want the club to repay the VAT they wrongly reclaimed. The club can't pay it until the supplier repays the VAT they wrongly charged. So both the supplier and the club in the wrong and HMRC just want the club to put right the VAT they wrongly claimed. Not sure why it's taking so long for the supplier to repay the monies they wrongly charged, but that's between the club and supplier, nothing to do with HMRC nor the EFL. Whoever was preparing the club's VAT returns should have checked that the supplier was right in charging VAT and that the club was right in reclaiming the VAT as you can't just glibly reclaim VAT you've been charged/you've paid without checking it's actually a valid recoverable.