Successful conclusion of VAT recoverability case

Checkit (AIM: CKT), the automated monitoring platform for operational leaders, is pleased to provide an update on the discussions with HMRC regarding matters of input tax recoverability.

As reported in its 2023-24 annual report, Checkit has been in correspondence with HMRC since 2022 regarding whether it was entitled to recover input tax incurred from November 2019 to July 2022. The total amount of input tax claimed under review was £1.2m.

This was disclosed in the 2023-24 annual report as a contingent liability, pending the outcome of a statutory review. The review of the case has now been completed and HMRC has recognised that Checkit was entitled to input VAT recovery throughout the period under review, given it has demonstrated to HMRC's satisfaction its intention to make taxable supplies of management services to its subsidiaries.

Following the successful conclusion of the review, HMRC's original assessment has been cancelled and no further action will be taken. The contingent liability is now no longer required.