It is believed HMRC is keeping around 1 billion of input tax claims from approximately 300 traders while extended verification is carried out. A trader represented by solicitor Hassan Khan has now challenged HMRC over its failure to make a decision about his March input tax credit pending verification.
The trader was seeking a judicial review of the HMRC policy not to repay VAT while carrying out extended verification. In a landmark case the trader has won the right to challenge HMRC at judicial review.
A hearing took place at the Royal Courts of Justice on November 16. After hearing both parties submission Justice Sullivan granted permission for the trader to challenge HMRC s actions as unlawful.
This is the first time such permission has been given by the Court in this way. Justice Sullivan ordered a full hearing to take place as soon as possible in the New Year.
Khan said: As far as we are aware this is a legal first and has not been done before. This is an important decision for traders who may be questioning whether judicial review of HMRC s failure to make a decision is the most appropriate action to take.
It is anticipated that as more Permission Applications come before the court permission will be granted in an increasing number of cases .
One trader added: It looks like a good result. The Judge has supported our view that HMRC can t have it both ways. Either they give us our refunds or they disallow them. They can t just hang on to our money just because they decide their verification processes are going to take the best part of a year.
Judicial review is a two-stage process. Only after obtaining permission can a claimant move to a full substansive hearing during which all the facts of the case are heard.

O2 store across the country are turning away customers because O2 is slower at testing and stocking handsets. They feel they are losing business to The Carphone Warehouse and Phones 4U as a result.
One O2 store assistant manager said: We get people coming in all the time and we have to tell them they will have to go to Carphone or Phones 4U for that handset.
An O2 sales advisor in the Midlands said: There have been plenty of times when we have had to turn our customers away because we simply haven t got what they are looking for.
One sales advisor based in the Northwest said last week: Already today I have had to turn away three customers because we didn t stock the handsets they wanted I think we would have more customers if we had all the handsets all of the time.

Kemp is responsible for all Data Select s marketing activity including advertising promotions and incentives with its suppliers.
George McPherson MD of Data Select s parent company Phones International said: Jason is responsible for the interface with the networks and manufacturers.
Kemp spent nine months at insurance and home services company Homeserve after leaving 20:20 Logistics at the start of 2006.
Kemp replaces Rachael Corb who has left to set up her own marketing business Lollipop.

The handset is available with CoPilot Live 6 satellite navigation offering turn-by-turn voice instructions street mapping and route calculation to find your way either in your car or on foot.
The device is pre-installed with a browser that enables users to view web pages as they could on their PC based on the Microsoft Windows Mobile 5.0 OS and comes complete with Microsoft Office.
Web n Walk customers can take advantage of free real-time traffic alerts and avoidance delivered
via the T-Mobile GPRS network.
The phone will be available from T-Mobile stores and online from November 16 and will cost 59.99 when purchased on the Flext 35 tariff plus Web n Walk.

The fortnight started with a disappointment and not just for me. Last Thursday (November 2) I had an appointment to meet Andrew Harrison of The Carphone Warehouse but he cancelled on me at the last minute. I wasn t too surprised as he had done the same thing a month earlier just before Vodafone announced it was getting cosy with Phones 4U and leaving Carphone out in the cold.
Setting that precedent Harrison s second cancellation left me suspicious and sure enough on the same day we were supposed to meet Carphone came out with some headliner six month figures. The official line is that he had been whisked off to the US presumably to do whatever he has been doing at home to Carphone s partnerships there.
On the day Carphone came out with a loss for the half-year thinly veiled by a vague announcement about talks with Vodafone over a pan-European multi-platform deal. When I quizzed the guys at Vodafone over this exciting pan-European plan they didn t really know anything about it.
Now it s fairly well known that it s not hard to get the boys in the City excited and confused about technology as long as you toss in some big names and some big business words. And I think that s what this apparently phantom deal is all about something to turn heads on the trading floor while Carphone files a huge loss. It didn t work though and the media was all over the story.
When all s said and done Carphone has done well. Underlying business performance is strong so one-time expenses on things like free broadband aside Carphone should be the darling of the high street again quicker than you can say Free broadband anyone? Lets hope so otherwise Andrew and I are never destined to meet.
At time of writing the trial for the vicious murder of City Lawyer Tom ap Rhys Pryce goes on. Stabbed to death yards from his own home one of the things he was attacked for was his mobile phone. It s a scenario that would make anyone s blood run cold. There s some cheer to be had from reports just out (Tuesday November 7) from the National Mobile Phone Crime Unit that said mobile phone crime in London at least has fallen down to a mere 52708 in the last six months. That s just over one in every 70 people per year or one person on any double-decker bus not including those who have to stand.
Even so any reduction is to be commended and well done to all those organisations who have championed the Immobilise scheme as a deterrent to mobile phone thieves. Ironically the fact that Mr ap Rhys Pryce s phone was not disabled turned out to be the defendants undoing. They were stupid enough to ring their friends on it which led the police to their door. One of the defendants also sold the phone on suggesting that it was indeed stolen for the purpose of converting into cash.
But is this always the case? If someone was going to mug you wouldn t they take your phone anyway so that you won t immediately phone the police? In that case Immobilise or any other remote blocking initiative will be of limited use. Food for thought perhaps.
Earlier last week I attended briefings held by arguably the two most powerful men in the UK mobile industry and what a difference there was in the two briefings. Last Tuesday I attended Vodafone s walk-though of its half-year figures presided over by Arun Sarin and chief financial officer Andy Halford. The event was held at a Vodafone site in London s Fleet Street where I had to be escorted through the building for security reasons. As I sat waiting for the briefing to begin Sarin breezed past me surrounded by besuited City lackies. We all filed into a lecture hall to hear Sarin and Halford go through the figures and tell us how they were pretty good really. Although he was genial Sarin was pretty static in tune with the fairly dry subject he was trying to clarify.

No old school ties
The difference between that and O2 s briefing the next day couldn t have been more marked. Granted O2 had already gone through the mill of explaining their own financials days before so Peter Erskine could afford to be a little bit more relaxed. Rather than hiding behind a wall of lackies he walked the floor of the cavernous room at the Vinopolis complex near London Bridge station. He greeted attendees with a smile and a shake of the hand. Just siting the meeting in a building that is a celebration of wine is a point in his favour in my opinion.
When up on the stage Erskine and his fellow presentees were stood in full view and animated not sat on a panel like they were on University Challenge.
The difference I think echoes the way the two companies seem to be presenting themselves. It s not that I think that Vodafone isn t a dynamic company it is. But why cling to this corporate formal way of presenting itself? Granted O2 is the geographically smaller younger and perhaps more hungry of the two and can afford to appear a bit more informal. It s not listed anymore so it no longer has to wear the old school tie to impress the City.

The new stores to open over the Christmas period include sites in Newmarket and Retford both opened this week as well as Clacton Stafford Manchester Newcastle Guildford Edmonton and Middleton.
In total Phones 4U has acquired 11 stores from The Link.
Phones 4U s footfall is at an all-time high thanks to its current television advertising campaign according to Phones 4U retail director John Welsh. Phones 4U is looking to maintain its level of contract sales over Christmas and post record pre-pay sales.
Welsh said: We enjoyed a record Christmas last year and we aim to improve on that this year by continuing to focus on customer service. It is essential to the success of the business for our staff to be highly motivated over the next few weeks.
There is a definite buzz around the stores and it is picking up each day. We re well known for our bonus schemes and it is fair to say that as in previous years our top performers will be extremely well rewarded. It is engrained in our culture to reward achievement accordingly.
Phones 4U will hold regional road shows and conferences for sales staff in the run-up to Christmas. Its management team is also expected to visit stores in the coming weeks to boost morale and sales.
Welsh added: We simply have to be better than anyone else on the high street. I am confident that we will continue to give each and every customer a great experience and the right deal. The force is with us.
Phones 4U predicts its biggest pre-pay handsets will be the Motorola W220 and L6 the Samsung
E370 and the Sony Ericsson K750i during Christmas.

The market is set to grow from $1.4bn ( 0.72bn) to over $3.3bn ( 1.69bn) by 2011 according to a report by Juniper Research. The most lucrative region for adult content is expected to be the European market which Juniper reckons will contribute almost 40 per cent of revenues during the period. The biggest seller will be soft porn according to Juniper.

The service will be automated from early next year. Customers will be able to back-up address book information from May.
O2 UK capability and innovation director Russ Shaw said: Many customers run their businesses or even their whole lives through their mobile. They worry about losing their mobile and the data stored in it. They also love to share stuff with their friends without having to spend too much time on it. My bluebook takes away the worry so our customers can get on with their lives.

The scheme gives customers free technical support and advice for 30 days when they buy a new phone.
After the 30-day period expires customers have the option to continue as VIP club members for 1.99 per month. The fee covers customers new handsets and any other mobiles in their household.
VIP club members also gain access to a special web site offering discounted electrical goods and money-off vouchers.
Rob Ballard channel manager for TMTI s VIP service said: As well as technical support for their mobile customers can also get advice about what Bluetooth products their handset is compatible with and even guidance on what handset to buy next.