1.As far as I can tell IP's can still claim back the VAT on a closed case.
2. My IP have made no effort to communicate any of this (January 2011 I last heard from my IP with the exception of the PPI letter)
3. It has been almost 6 months since my last payment
4. Keeping cases open is at the discretion of the IP
Quite frankly they should be ashamed of the way this has been dealt with and get on with closing cases so people can get on with their lives.
Communication is the key here, common courtesy is the phrase I think.
Ignorance and incompetence are the words that spring to my mind.
Last edited by 2e1var on Mon Jan 16, 2012 6:36 pm, edited 1 time in total.
1 year since final payment and still no completion certificate
As Melanie Giles has also posted we have no idea how long it will take. The claims were all submitted together for all of Varden Nuttall's IVA's (back in September 2011) and I assume all other IP's have done the same at roughly the same time. I agree with you that it should not take more than 6 months and in normal circumstances it wouldnt but we (all IP's) are at the mercy of HMRC on this one. We have been told to expect an update at the end of January so we are in the dark until then. HMRC have currently not paid any VAT refunds to IVA companies to date that I am aware of.
As we have been officially advised that we should not close cases down until the VAT issue is resolved I doubt you will see many IP's continuing to close cases going forward.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Gareth
Please note we are not taking our time with your closure, it is that we are unable to progress your IVA case further until we have received the VAT refund from HMRC.
Sorry Gareth but that is not true. The advice from ICAEW, linked to from your site, very clearly states that it is at your discretion. If it's at your discretion then you should be making some decisions and clearing up some of these older cases. The fact that you submitted claims back in September and in the middle of January you finally decide to inform your clients of what is happening is quite frankly shocking.
1 year since final payment and still no completion certificate
"8) POSTPONING THE TERMINATION OF OPEN CASES
Where possible cases which would otherwise be due for closure should be kept open where a claim has been or is to be made either by exercising the discretion usually included in a proposal or by seeking a variation. This is because a supervisor is likely to have more extensive powers in an open case and could therefore deal with the issue more easily. As this appears to be proper exercise of the supervisor’s powers criticism would be unjustified."
Please note that we received informal guidance last year but the formal guidance to the same effect was issued last week. The ICAEW are cited as issuers of this guide. Hope this clears up any confusion.
As a quick addition to my above point. The other issuers of this guidance are:
Association of Business Recovery Professionals (R3)
Insolvency Practitioners Association
Institute of Chartered Accountants in England & Wales
The Institute of Chartered Accountants of Scotland
The Association of Chartered Certified Accountants
Chartered Accountants Ireland
Debt Resolution Forum
As previously posted we have received nothing back as yet from HMRC.
Regarding windfalls I don’t believe it is fair for the client to suffer. We are currently seeking guidance on this issue from our regulators and also major creditor representatives. I hope that the outcome is that windfalls will not be included for those cases which are only still open due to the VAT issue.
I am glad you are taking this approach Gareth because after fulfilling the agreement in full it would be heartbreaking to inherit some money which could set you up towards a deposit on a new property etc for it all to be swallowed up all because the IVA wasn't closed when it was supposed to be.
I await our 1st poster who wins 100k on the lottery while sitting on his/her thumbs waiting for closure due to HMRC delays taking their IVA firm to court over this.
I assume that as all cases went to HMRC at the same time they have been totally swamped with claims. They really didnt think this through properly,but I am still unsure why some IP's are closing cases as normal,yet others are not.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Gareth
As previously posted we have received nothing back as yet from HMRC.
Regarding windfalls I don’t believe it is fair for the client to suffer. We are currently seeking guidance on this issue from our regulators and also major creditor representatives. I hope that the outcome is that windfalls will not be included for those cases which are only still open due to the VAT issue.
It is good to see that someone is at last addressing this point ( as I have suggested in previous posts!). A Certificate of Compliance, releasing the client from the restraints of the IVA, could be issued prior to administrative completion, once usual formalities have been dealt with, leaving only the HMRC claim in abeyance.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
