Insurancewide have been in litigation with HM Revenue and Customs, regarding the partial VAT exemption accorded to Insurance Companies and their intermediaries. The claim against the Company is in the region of £650,000.
On the 15th May 2009, the High Court ruled that the Company will not be required to pay VAT on internet based commissions and HMRC have the right to appeal. On June 19 2009, they informed the Company that an appeal will be lodged.
This matter has cost the Company over £470,000 in the five years of the case, and it is estimated that defending the appeal will cost a further £180,000. If HMRC were successful, then they would have a claim against the Company for a sum in excess of £650,000.
Trader Media (who run autotrader) are also invovled in the same legal battle. Insurancewide is due to close on 31st August 2009 – unless it gets help!