Following a House of Lords judgment that has discredited a claim deadline imposed by Her Majesty's Revenue and Customs, dealers can expect to receive all outstanding payments.

The House of Lords has decided that pre-existing rights to VAT before 1 May 1997 are protected despite a three-year cap on claims introduced by HMRC.

NFDA director Sue Robinson said: “This is good news for dealers who have put claims in that missed the original deadline of 30 June 2003. These should now be paid on the basis of the judgment.

“Those few businesses eligible that have not yet made claims should do so as soon as possible, before HMRC put legislation in place to close this gap.”