Homestyle faces £23m bill for VAT
12 April 2012
FURNITURE and textiles retailer Homestyle is facing a £23.2m bill for unpaid VAT which would wipe out its annual profits. The company, which owns Rosebys and Harveys, warned today that Customs & Excise had said it should have charged VAT on warranties at 17 1/2% instead of 5%.
It claims Homestyle owes £9.9m for the 16 months to April 2001. The company said that its total potential liability could be £23.2m excluding penalties and interest.
Homestyle has appealed and expects an industrywide challenge to the Customs' hard line.