www.iva.co.uk

although all my claims are in and 100% is being paid to them i am told by my IP that they cant conclude because of a legal dispute over vat and iva s can anyone explain

There has recently been a case where it was ruled that VAT is not chargeable in IVA's and the sums should be paid into the pot for the benefit of the creditors.

Many firms are closing as normal, however some have held up closures until the finer details have been sorted.

Have a look here; http://www.iva.co.uk/forum/topic.asp?wh ... 391#395324

I would continue to press for closure - it is unfair for individuals to be kept waiting as it will not be removed from your credit report or marked as satisfied until the certificate of completion is received - likewise you will stay on the insolvency register longer than needed.

I know some firms have chosen to continue to close cases and deal with any issues later.

As you are paying 100p back in the £ then it may be that there will be some money heading your way !

The vague world of IVA firms. Some are still concluding iva's and others are refusing to thus holding on to the chance to snatch any windfalls!!!

Paul

which company are you with Charlespp? Maybe they have a representative on this forum who can help you.
Oscar

I am experiencing the same issue with Tenon...
completed IVA several months ago, now they say "all closures are on hold pending the outcome of this VAT dispute"....
I asked why my paperwork has anything to do with their fees and the VAT they pay on them, and they claim it is because once the IVA is closed off, they would have no way of getting VAT back on them (if the decision went that way)..or something like that!

Hi
I think that this is out of order.
Your IVA and life should not be put on hold because of a change in the VAT accounting for IVAs.
We need clarification regarding this issue

Mel, what are your thoughts ??

Regards

Mel is continuing to close cases as normal, Andy. I posed a question in another thread (as yet unanswered) asking what our "resident" IP's were doing regarding VAT and closures. I am aware that a couple of firms ( for the life of me, can't recall which ones) did put closures on hold, but, after hearing via this forum, that some firms were still closing, took advice and resumed closing.

I am being told an outcome is "several weeks, but not months away", and that Tenon only have a team of a couple of people to work through a backlog of "500" closures...

I was not happy to hear about this, as you can imagine, and I pressed Tenon to explain why exactly I should suffer because of their VAT issues, after having paid my side of the agreement, but was just given a "don't call us, we'll call you" attitude...

I need my closure paperwork, and don't need to have a reason why, and feel I shouldn't be held up like this to get it.

I had thought that RSM Tenon had got the go ahead to close their cases. For me - it is business as normal. Initial indications from our regulators are that VAT reclaims will not need to be processed if the cases are closed, so perhaps some IPs are clinging onto the fact that they may get a share of any windfall returned. No-one has said stop closing cases, so far as I am aware, and the advice I received from our specialist advisors was to close as many as you can. I don't like completed cases hanging around - it is not good for our clients and not good for our firm. Until creditors put me on notice that they do not wish cases to be closed, I will continue although we are all awaiting Counsel's opinion one way or the other.

People keep talking about the IPs hanging out for part of a windfall.What do they actually mean.

MelanieGiles wrote:

I had thought that RSM Tenon had got the go ahead to close their cases. For me - it is business as normal. Initial indications from our regulators are that VAT reclaims will not need to be processed if the cases are closed, so perhaps some IPs are clinging onto the fact that they may get a share of any windfall returned. No-one has said stop closing cases, so far as I am aware, and the advice I received from our specialist advisors was to close as many as you can. I don't like completed cases hanging around - it is not good for our clients and not good for our firm. Until creditors put me on notice that they do not wish cases to be closed, I will continue although we are all awaiting Counsel's opinion one way or the other.

it really is unfair for those that have finished paying to be left hanging - you cannot move on with your lives fully until you have the certificate in your hands, and the insolvency register line removed!

I know it was only when i got my certificate that I really breathed a sigh of relief and only then did we look to spend our IVA amount on other things -we saved the three payments in between making our last payment and the certificate arriving just in case we were told we had not finished - it is so unfair to have come this close and be kept hanging !

That as they say is not your problem. Wtite to them and tell them that it is unacceptable unless your recieve a satisfactory response you will start a formal complaint to the FSA or the FSO check with with either authority which is the most appropriate

That's interesting under what circumstances does a creditor have the right to prevent closure?

PS that's an assumption that IP's are regulated by the FSA?

charlespp and loopfish this must be so frustrating and I hope you get it sorted out. I could not cross our completed IVA from my mind until we received our end certificate.

Does anyone know, is there a RSM Tenon representative on this forum who can help with these 2 cases?

Also, Charlespp and loopfish I'm thinking that if you mention the forum in making your enquiries and say you have requested advice on here that this may help speed things up? It's worth a try. Best wishes

Oscar