Compound interest: time limits

The tortuous progress of litigation regarding HM Revenue & Customs having to pay compound, rather than simple, interest has continued with the Court of Appeal decision in Wilkins et al. This decision is rooted in the question of whether s78, VAT Act must be read as allowing compound interest. However, it also deals with a subsidiary theme: whether these appellants appealed a ‘decision’ by HMRC to pay only simple interest within the appropriate timeframe. The substantive compound interest issue has been referred to the European Court of Justice under the Littlewoods case.