Lycamobile UK loses £51mn VAT case in latest setback for telecoms company

• Lycamobile UK has lost a £51mn dispute with British tax authorities over VAT treatment of customer “bundles”
• The company’s auditor was unable to sign off on Lycamobile UK’s accounts for 2022
• Lycamobile’s French entities were convicted of VAT fraud and money laundering last year
• The tribunal ruled that VAT is chargeable at the point of sale, regardless of whether customers use the allowances
• The size of the payment to be made by Lycamobile to HMRC is still to be determined
• Lycamobile is working with HMRC to interpret the ruling and may seek guidance from the tribunal if agreement is not reached

Source: ft.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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