INDIVIDUAL VOLUNTARY ARRANGEMENTS-VAT EXEMPTION
PAYMEX LIMITED v HM REVENUE & CUSTOMS
PAYMEX WIN
Ruffles & Co Limited has achieved a major VAT Tribunal judgment that income from setting up and running IVA’s is exempt from VAT. Please note that due to an error by the Tax Tribunals the Appellant’s advocates are shown on the decision as being instructed by the wrong party. Counsel in this case was instructed by Ruffles & Co and no-one else.
Although HMRC may seek permission to lodge an appeal against the decision the current position is that IVA income, both nominee and supervisory, is now exempt from VAT. It is possible that IVA practitioners are no longer required to be registered for VAT. These firms should now be planning how best to manage their deregistration from VAT and how to maximise the enhanced income that is available to them.
As IVA’s have never been subject to VAT IVA practitioners could be due a refund of the net VAT that they have remitted to HMRC in respect of IVA’s over the last four years. They may also be entitled to a payment of statutory interest. This refund could be substantial.
Ruffles & Co have great experience in dealing with the issues that arise as a result of both deregistering from VAT and, more importantly, in countering the HMRC objections to repayment of refunds. We can assist IVA practitioners to meet their obligations in respect of deregistering from VAT and obtaining the refund that is due to them. As refunds are time barred at four years IVA practitioners need to protect their position now. By lodging a protective claim now they are ensuring that in the event that litigation continues they are not losing the benefit of any VAT that might be due to them.
I cannot sufficiently stress how important it is that protective claims are lodged against HMRC as soon as possible.
If you are affected by this decision then please do not hesitate to contact me to discuss our service and fees. Our fee structures are flexible and are designed to offer to you a solution that will suit your specific needs. Fee structures vary from a ‘no win no fee’ arrangement to a set hourly rate or to a combination of both. Ruffles & Co has already recovered or secured over £25M of VAT on behalf of clients situated within the insolvency and debt management sector.
To discuss this opportunity further please do not hesitate to contact me by calling 07818 046224 or by sending me your contact details by email to
[email protected]. I look forward to hearing from you soon and to being of assistance to you in the future.
Martin Ruffles
Managing Director
