In a recent decision in the case Lidl Great Britain Ltd v Closed Circuit Cooling Ltd (t/a 3CL) [2023] EWHC 2243 (TCC), the Technology and Construction Court (TCC) provided clarifications around statutory payment provisions in the Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996).
All construction contracts are required to comply with these statutes. The ruling strengthens the comments made by Justice Cockerill in a prior case, Rochford Construction Ltd v Kilhan Construction Ltd [2020] EWHC 941 (TCC).
The case involved issues surrounding Value Added Tax (VAT) invoices and the final date of payment. Specifically, whether issuing a VAT invoice could serve to alter the final date for payment. VAT invoices are a critical part of the tax system and their impact on financial transactions, such as defining due dates for payments, is often a source of contention in cases like this.
The court’s ruling guides lawyers, primarily those operating in the construction sphere, in the interpretation and application of VAT and other statutory payment provisions. More information on the ruling and its implications can be accessed through the above link.