www.iva.co.uk

Hi all,
I finished a 6yr iva in jan this year, I still have had no certificate through. I contacted my supervisor which is payplan and they have told me that all iva's are unable to be finalised with certificates at the moment due to an ongoing problem with claiming back VAT. They have told me it has nothing to do with ppi. So I am unable to get this taken off my credit file until I receive the certificate, looks like I'll be being punished for 7 yrs rather than the 6yrs it was supposed to be. Any advice or info would be much appreciated.

Hi and welcome

Unfortunately it is correct, there has been a problem with VAT and also with PPI. Until this is sorted then a lot of people are stuck in limbo waiting for completion.

It seems to be taking them a long time to deal with the VAT issue. My own VAT reclaim was issued by HMRC some weeks ago and has largely been distributed now. Ask them to confirm exactly what the current position is, and to give you a best estimate of how long things are likely to take to finalise.

I have asked them and they have no idea when it will be finalised, they said it has been going on since around nov last year. Is there a governing body that I can go to or can I contact the court directly to get a certificate?

The court will not issue a completion letter, that's down to the IP.

Have you tried emailing your IP directly? You can do so via this link:

http://www.insolvencydirect.bis.gov.uk/fip1/

The IPs regulatory body will be unable to assist, if your IP is still waiting for the VAT money to be repaid by HMRC. I am afraid that it is probably a case of sitting and waiting - my own claim took around 9 months to be paid out.

Hi and sorry to be thick but what is the VAT situation all about, is it something new?

I was wondering this too.....

Last May (2011) it was decided that VAT should not have been charged on IP fees for IVAs, so firms are having to submit refund claims to HMRC to get this money back and repatriated to estates. It has been a lengthy process.

Thanks Melanie.

Does this mean that iva's accepted after may 2011 should have no VAT charged on fee's?

Yes that is correct

Hi, does this mean that full VAT gets refunded or just a portion of it?

In light of all this I've just sent an email to my IP asking if anything is being done about them claiming a refund (for my creditors benefit - I stressed that point) I'm just about to start year 4 so didn't want them suddenly decided at the end of year 5 that they had to do it. Kind of hoping this will mean they do it sooner rather than later.

Who does the VAT money go to?