My elderly mother has just told me that she returned a bag to M&S (Grimsby store) the same day she bought it with receipt which cost £6, and she was given a refund of only £4.80. When she queried it, she was told that they had to take VAT off the refund.
I have searched M&S website and the internet in general and can find no mention of this policy and have never heard of this happening before. Anyway, VAT at 15% on a £6 item would be 90p not £1.20. Her refund receipt sheds no light on this.
I too would be keen to hear what this is all about as it has had no publicity. I plan to call M&S customer services tomorrow (0845 6090 200) to check this out, then will post their reply!