IntegraFin to contest after HMRC upholds VAT decision
By Josh White
Date: Tuesday 21 Jun 2022
(Sharecast News) - IntegraFin updated the market on its ongoing VAT dispute with Her Majesty's Revenue and Customs (HMRC) on Tuesday, after HMRC upheld its original decision.
The FTSE 250 company said HMRC decided in January 2020 that Integrated Application Development's (IAD) membership of a UK VAT group was terminated, with effect from 4 July 2016.
It said the consequence of that exclusion was that the services provided by IAD would be subject to reverse-charge VAT.
Integrated Financial Arrangements, a subsidiary of IntegraFin, requested a review of HMRC's decision.
"Yesterday the company received notice from HMRC that it had completed its reconsideration and would uphold its original decision, which is subject to a further review," the company said in its statement.
In the event of an adverse decision, for the period 4 July 2016 to 30 September 2021, the firm said the potential VAT due would be £7.9m, while the potential VAT due for the financial year ending 30 September 2022 would be £1.9m.
There would then be a potential ongoing annual VAT charge.
"IntegraFin had previously disclosed in note 36 to its financial statements for the year ended 30 September a contingent liability for the potential payments to HMRC.
"The company has taken, and continues to take, senior counsel's advice throughout this process.
"The company contests the findings of HMRC and now intends to require a review by an HMRC officer not previously involved with the matter."
At 0905 BST, shares in IntegraFin Holdings were down 0.08% at 244.8p.
Reporting by Josh White at Sharecast.com.
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