Engineering

Global Engineering Business

This international engineering business, based in Europe, was arranging a new finance package for its business. The organisation was engaged with two major banks that subcontracted some aspects of the refinancing to leading accountants and solicitors.

All invoices from these third party advisers were passed on at cost by the banks directly to the client organisation inclusive of UK VAT. However, because the invoices were directed at the banks, not the client organisation, it meant that the company couldn’t reclaim some £700K of UK VAT.

Following an analysis of the situation, Accordance concluded that if the banks made use of ‘direct attribution’ the client would be able to recover all of this UK VAT.

After tracking down previously processed invoices Accordance worked with the banks and the client to submit a ‘voluntary declaration’ to claim the £700K VAT paid in the previous 3 years.