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Ok, its not exactly a new subject, but there is still a lot of misunderstanding about this. Leading to many  initiating costly Detailed Assessment Hearings. 

 

The current debacle regarding who pays VAT on fees, refers to the fees paid by the creditor to the HCEO or their employees for their services. 

 This is where the confusion arises.

 

The HMRC says that these fees(chargeable to the creditor) and the vat generated by them are paid by the judgement debtor,

UNLESS the creditor is VAT registered,

in which case they are payable by his firm and reclaimable,

the same as any other output tax.

 

This does not apply to VAT on fees collected by self employed EA(employed under section 2.4 of the courts act).

These are self contained businesses who are responsible for their own tax receipts and payments.

It really is pointless checking whether the creditor is VAT registered in these cases. 

 

In passing the HCEO gain no advantage from collecting VAT, they are just a conduit to the taxman and could well do without the expensive hassle.


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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Just for those who cannot be bothered with explanations.

 

V.A.T on enforcement of high court writs is entirely legal

Quote

 

 


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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Here is the section which applies. Internal VAT Guidance.

https://www.gov.uk/hmrc-internal-manuals/vat-business-non-business/vbnb41720

The Sheriff’s Officer organises the activities of the bailiffs and, where necessary, the sale of the debtor’s goods. In some areas, they are a salaried employee of the Under-Sheriff. In others they are a self-employed sole proprietor or partner working either full- time as a Sheriff’s Officer or part-time as a Sheriff’s Officer with other business activities such as an auctioneer.

If they are not an employee their services are taxable. The position of bailiffs is similar to this.

The other people involved in High Court debt recovery work, for example locksmiths, auctioneers or removal men are also regarded as making taxable supplies in the course of their businesses.

(b) Nature and value of supply

The total fees and allowable expenses payable in respect of services provided by the different people involved are set out in the relevant Sheriff’s Fees Order. The value for VAT purposes is the amount each person gets as their share of the statutory fee and any expenses charged. The full amount charged, including tax, is recoverable from the debtor.


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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