www.iva.co.uk

I recently came to the end of my own IVA but my Creditors have yet to be paid because of "a degree of uncertainty with regards to the Nominee's and Supervisor's VAT".
Can anyone throw any light on this problem ?

Hi WYCI i can't answer you question to be honest and hopefully one of the experts will pick this up. This does seem to be a problem at the moment but if i'm correct this came about last summer so surely it shouldn't take too long to be sorted now. Good luck to you, hope you get that all important certificate soon. xx

Hi

My understanding is that there has been a change in that VAT is no longer charged on supervisor and nominee fees, hence some IPs are not closing IVA cases because they are unsure what they have to do regarding the VAT that has been collected and paid over to HMRC. This may have to be distributed to all your creditors before the IVA is concluded.

It is not fair on people like yourself who have battled to the end of their IVA only to find that closure is held up

Regards

Which company are you with Wouldyoucreditlt?

Companies appear to have been given guidance however they arent all acting in the same way with regards to this VAT issue.

Paul

RSM Tenon who appear to be having problems at the moment.
I hope my creditors' money is ringfenced.

I am with RSM Tenon and have been told this wont be an issue for closures.

Ask them for an update on how long they expect this to take.

Paul

I have been told that Tenon is still closing cases, but, due to conflicting advice receieved earlier in the situation, they have a huge backlog to deal with. They have assigned additional staff to the closures team to deal with this, but are prioritising urgent cases.

Oh i so hope this is sorted out by the time i complete in September, purely being selfish here but fingers crossed.

RSM Tenon have just informed me that they are not closing cases.

Wish they'd make up their minds !!!!

That is really down to HMRC and not the IPs - although we have been advised that it is up to us to decide, and then hence stick nby our decision and take personal responsibility to creditors if monies are not refunded on closed cases. IPs should not be asked to make that judgement, nor make themselves personally liable, clarity ought to be provided by HMRC - and the sooner the better.

Who is acting for IPs in this Mel? Is one body able to take concerns and questions to hmrc?

Paul

So does this mean that until a clear directive is issued by HMRC some IP's will just leave IVA's open until they fully understand what to do with VAT payments??

I would be very interested in a simple statement from Karol on where GT stand on this

Having endured 5 hard years repaying an IVA it's not too much to expect that once you have paid your dues closure should be relatively straight forward, timely and painless.

I guess we shouldn't be surprised that it's a government department screwing things up, almost everything else they touch goes pear shaped so why not IVA's [:(!][:(!][:(!]

Sorry if I appear cynical but I thought completion would be the easy bit [:o)][:o)][:o)]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Andy Davie

Hi

My understanding is that there has been a change in that VAT is no longer charged on supervisor and nominee fees, hence some IPs are not closing IVA cases because they are unsure what they have to do regarding the VAT that has been collected and paid over to HMRC. This may have to be distributed to all your creditors before the IVA is concluded.

It is not fair on people like yourself who have battled to the end of their IVA only to find that closure is held up

Regards

Firstly can I thank eveyone who has helped me with this.

RSM Tenon has been guided by the Insolvency Practitioner's Association (IPA) and their release dated 12 January 2012.

I am going to approach RSM Tenon on these lines :-

In my particular IVA there has never been a distribution to Creditors and so claiming back the VAT from HMRC should be straightforward (and there is nothing to do at all if RSM Tenon have never sent the VAT to HMRC !).

What do you think ?

The VAT would have been charged by Tenon for their work as nominee and supervisor. They would have raised invoices for this which would have been paid by funds held from your monthly IVA contributions. If the Tenon invoice was for say £100 + VAT, they would have taken £120 from your IVA funds and in effect kept £100 for themselves and paid the other £20 to HMRC.