This was an appeal against HMRC’s refusal to allow an adjustment to the Daily Gross Takings (‘DGT’) on a bespoke retail scheme agreement (‘BRSA’) for the purpose of accounting for VAT to HMRC.⯠It was accepted that it paid over VAT to HMRC on sales for which it had received a cheque that was later dishonoured and that in the period 5/12/96 to 6/2/2003 it did not reclaim this VAT.
In its VAT return for the period 01/2018 it made an adjustment to reclaim this VAT in the amount of £1,876,141.00.⯠HMRC refused to accept the adjustment.â¯â¯
Both parties agreed that the appellant was entitled to use a simplified accounting procedure in the form of a BRSA and was entitled to reclaim Bad Debt Relief (‘BDR’).
Both parties were agreed that the appellant’s bespoke