This case considered TalkTalk Telecom Limited (TalkTalk)’s appeal against HMRC’s assessments in the sum of £10,606,226 to recover VAT underpaid during a four month period between 1 January and 30 April 2014. During this period TalkTalk offered a ‘Speedy Payment Discount’ (SPD) which was a 15% discount on its services if their monthly bills were paid within 24 hours. TalkTalk accounted for VAT on the basis that consideration received was reduced by the discount whether or not the customer paid within the 24 hours.
Source Constable
