UPDATE ON VAT RECLAIMS - CLOSURE OF INITIAL CLAIM
On 5 March 2010 Michael Page International plc (MPI) announced that an agreement had been reached in principle, subject to legal contract, between MPI and Her Majesty's Revenue and Customs (HMRC) in respect of the initial claim for a refund of overpaid VAT plus statutory interest.
On 30 April 2010, a formal agreement was signed with HMRC. As a result, of the 50 million originally received from HMRC, MPI will retain 38 million and will return 12 million by the end of May 2010.
Accordingly, after fees, MPI will recognise approximately 28 million as non-recurring income in its 2010 Income Statement.
In respect of the amended claims for a further refund of an additional 80m, net of fees, of overpaid VAT there have been no further discussions or meetings with HMRC and MPI will continue to pursue the claim.
The Group will update the market on further developments relating to the claims when appropriate.