William Hill is set to receive a whopping £150m in FOBT taxes. Bookmaker William Hill has said that it could possibly receive a windfall of up to £150m after the industry won a challenge over sales tax on controversial fixed-odds machines in betting shops.
The firm said the government’s Revenue and Customs office had decided not to appeal against a tribunal ruling that found companies had been paying too much value added tax (VAT) on fixed-odds betting terminals (FOBT).
“Whilst William Hill currently expects the net cash recovery to be material, its precise quantum remains uncertain. Nevertheless, the board has considered a number of scenarios which suggest a potential net cash recovery of between £125m and £150m,” the bookmaker said.
“The group has submitted claims which are substantially similar to those provided in the VAT challenge. Those claims have not yet been subject to the detailed evidential and accounting reviews that will need to take place before entitlement to the refund can be settled,” William Hill added.
The industry as a whole could recoup £1bn in VAT as a result of the ruling based on the rate of VAT paid on combined income from FOBTs between 2005 and 2013, which amounts to more than £8bn plus interest.