DCA claiming Paymex vs. HMRC VAT refund as payment

[savageuk]

This one is complex, I’m hope somebody can offer guidance…

 

I entered an IVA that subsequently failed on the 13th of October 2008.

 

 

No acknowledgement or payments have been made by me and as of the 13th of October 2014 I consider the debt to be Statue Barred.

 

I have a letter from the accountants managing my IVA dated 13th October 2008 that the IVA failed,

along with a ‘Final Report’ that there have been no distribution of funds

and that there was ZERO balance in my account.

All monies I paid went into paying the accountant.

 

Just as the debt (in my view) became Statue Barred the DCA contacted me after almost a two year silence

- I replied with a standard Statue Barred template letter.

 

It now transpires that as a result of the Paymex Limited vs. HMRC (VAT refunds on IVA’s)

a bulk payment to the DCA from the accountants included a £14.36 VAT refund

of my IVA that has been distributed across the accounts the DCA hold dated 11th December 2012.

Naturally the DCA now claim that the debt is not Statue Barred.

 

I would beg to differ.

 

 

The Paymex vs. HMRC case was completely out of my control.

 

 

I was not informed that the accountants would make the VAT refund to the DCA.

 

 

In my view they (the accountants) acted independently, and my relationship with the accountants terminated on the 13th of October 2008.

 

 

As such the debt is Statue Barred.

 

I hope that somebody can provide any guidance on this issue – and what my next steps should be in responding to the DCA.

Edited February 3, 2015 by savageuk

[Andybars]

In order for a payment to reset the SB clock, it needs to have been made by you or, on your behalf with your authority to do so. Given that you have neither made the payment nor were the accountants acting for you at that time, it is my own view that this payment would not restart the clock.

 

 

Do you have any written confirmation that the accountants ceased to act for you in 2008, this would certainly help the case

 

 

I would suggest a brief letter to the DCA advising that the account is statute barred as you did not pay or authorise the 2012 payment, asking them to provide evidence that you authorised the 2012 payment from HMRC via the accountants if they disagree

[Hardupnotfedup]

In order for a payment to reset the SB clock, it needs to have been made by you or, on your behalf with your authority to do so. Given that you have neither made the payment nor were the accountants acting for you at that time, it is my own view that this payment would not restart the clock.

 

 

Do you have any written confirmation that the accountants ceased to act for you in 2008, this would certainly help the case

 

 

I would suggest a brief letter to the DCA advising that the account is statute barred as you did not pay or authorise the 2012 payment, asking them to provide evidence that you authorised the 2012 payment from HMRC via the accountants if they disagree

 

I agree hope the OP comes back to read. But I fear not.

[savageuk]

Thank you

- I've replied to the DCA maintaining that the debt is Statue Barred.

 

 

Additionally, the Accountants have provided me a letter stating that the IVA terminated on the 13th of October 2008

and that the 'payments' are VAT refunds.

 

 

My defence would be that I could not anticipate nor be expected to know that Paymex Limited

planned to take action against HMRC and that the decision to refund VAT was/is totally out of my control.

 

 

Additionally, in my view, refunds are the return of money from previous payments that took place prior to the IVA failing

/ being terminated. It's effectively not new money!

[Stigman]

Hi Savageuk,

 

A few links to help you with your situation...

 

https://www.r3.org.uk/media/emails/pdfs/VAT-in-IVAs-guidance-Aug-2011.pdf

 

https://www.r3.org.uk/media/documents/technical_library/Technical-Alerts/Further-guidance-on-Paymex-re-VAs.pdf

 

Stigman

[dx100uk]

what is the debt all about?

 

 

dx

[savageuk]

Good news! After initially claiming the debt was not Statue Barred, the DCA claim they 'carried out a quality check' on my complaint (yeah right) and found that the information I supplied regarding the 'payments' (VAT refunds) was correct and the DCA has stated in black and white in a letter to me that the debt is Statue Barred, accounts closed and I will not hear any more from the DCA.

 

Win! Thank you to everybody who posted comments. Much appreciated

[Stigman]

That's great news, keep that letter safe.

 

Stigman