William Hill to scoop £150 million after taxman overcharges it on VAT

Bookmaker William Hill today said it could be set for a tax windfall of up to £150 million after the industry was overcharged VAT on its so-called FOBT machines in betting shops.

The likely rebate stems from a decision late last week from HMRC that it will not appeal a tribunal ruling that found companies had been paying too much.

Tax officials have been battling the industry for years after Betfred said it had been overpaying VAT on winnings on FOBTs between 2005 and 2013. It successfully argued this was wrong because the very same games were exempt if played in casinos or online.

William Hill said: "Whilst William Hill currently expects the net cash recovery to be material, its precise quantum remains uncertain. Nevertheless, the board has considered a number of scenarios which suggest a potential net cash recovery of between £125 million and £150 million.