Hi all,
I made my last payment in August last year, paying 100% of debt plus fees and VAT.
My debts were approx 50k - with another 10k added with fees and VAT.
My query is regarding the VAT ruling - what exactly should I have paid VAT on and what is excluded?
On my final statment it says I paid 1400 approx in VAT - I'm unsure of what aspects of the IVA VAT is payable on and was hoping an expert can advise?
Leaves a nasty taste in the mouth if I've paid £1400 more than I should...
I've emailed and asked Declan (several times in the past year) and DFD claim I only got charged £2.26 since Sept (can't see how) and that's all they acknowledge.
Declan seems to not really understand the VAT issues so I was hoping someone could advise? Should I have paid this £1400 or not?
Thanks x
The ruling in the Paymex case states that VAT should not have been charged on the IP's fees, so with the benefit of hindsight you should not have been charged the £1,400 and your IP will have submitted a refund for that money. If you did pay your debts and the costs in full, then the VAT refund should come back to you in which case I cannot see any reason why your case could not be closed, as any agreement to a fee for the work done in repatriating the estate would need to be agreed with you and not creditors.
Please note that the VAT reclaim eventually returnable is likely to be a lot less than £1,400 as IPs submitted claims net of their firm's input tax. And before you blame the IP for this, please note that until July 2011 we were advised by HMRC that we should be charging VAT, so no-one has really done anything wrong here - apart from maybe HMRC for giving inappropriate advice to the profession in the first place.
Hi and thanks Melanie - I'm not blaming DFD for this at all, I'm merely trying to get some clarification as I've been trying for months to get an answer from DFD and it's like getting blood from a stone...
My IVA is closed and my CC was sent out in January, I've been trying to get an answer from them about the VAT since September...
I am only seeking to find out if monies should be due back to me which I believe they are - Declan admitted he wasn't sure on the whole VAT issue when I last had contact with him. I don't see why, if DFD submitted a claim for the VAT refund, I haven't had anything refunded to me.
Again, it seems the lack of info from DFD is making a question more complex than it needs to be
