Roger Taylor

Thanks for the reply, However, the guidance referenced deals with correcting previous errors in submissions. In our case, the handling of VAT was not an error as we had no idea if we would recover all or any of our legal fees. Had there been no recovery, the submissions would have been correct.

We were involved in litigation for which we engaged solicitors. They submitted a number of bills as the matter progressed and we offset that VAT against our own liabilities. The claim has now been settled in our favour and we have been able to recover approximately 90% of the monies paid to the solicitors, including VAT. How do we submit payment for this to HMRC as we have, in effect, recovered VAT which we had already offset against the amount which was naturally payable through our business?