Jump to content

 

BankFodder BankFodder


Recommended Posts

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.

 

Just for those who cannot be bothered with explanations.

 

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

 

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

Share this post


Link to post
Share on other sites

Hi

i have just had a heated conversation with a HCEO company.

 

I asked them for a VAT receipt for the Compliance element of the debt (£15).

They said, we dont have to provide one as it would be offering you a discount.

 

I did lose the plot and ask to speak to the one who had the brain cell for the day which didnt help

but Article 13 of the  VAT Regulations 1995 (SI 1995/2518)

a VAT registered business is required to supply a proper VAT invoice when requested to do so by a VAT registered customer.

So am I entitle to ask for the receipt?

Thanks

 

please reply to my thread here:

 

 


Whatever I post is my opinion and should be taken as such, an opinion. While it is what I believe and is offered in good faith, it should not be taken as a statement of truth

Share this post


Link to post
Share on other sites

If you are the debtor, no you are not entitled to a vat invoice.

 

V.A.T receipts are only supplied to the creditors who instruct the bailiff, as it is only he who pay it, on instruction.

You cannot reclaim VAT as the end user.

 

Certain people seem unable to understand this simple matter, but, as it stands, EA who are contracted self, employed and not employed directly by the HCEO can charge VAT, in the normal way.

 

 

Edited by Dodgeball

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

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...