Hi, I made my final IVA payment in August 2011 and was happily awaiting my completion notice etc, but instead my IP sent me a letter regarding a delay due to a new issue of 'HMRC VAT refunds'. I chased them up a month ago via email and they stated the following, 'As far as the completion of your IVA is concerned we are still held up by the HMRC VAT refunds. I appreciate that it is frustrating for you and you are not alone, we have quite a few cases we are unable to close currently because of this issue. Unfortunately, our hands are tied as, creditors are aware of these refunds and are insisting that they be claimed and paid into your Arrangement for dividend distributions...' Does anyone else know about this? The way this is going it could take many months. Back in early October they said it should be sorted in about a month, obviously this has not happened. Thank you in advance for any light you can shed on this situation.
A number of posters have been affected by this issue and Different firms are acting differently. Some are closing cases and then distributing vat refunds to creditors while others are keeping cases open. You need to clarify with your IP where you are still subject to clauses relating to windfalls etc as it is very unfair if you are.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think it all depends on the companies at the moment - some are closing, some aren't. No idea why that is.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Just the same as the PPI issue really isn't it. Some IP's have a common sense approach to help us move on as quickly as possible, while others are waiting. It's a shame that they don't all have a common approach as it can make giving advice on here a little difficult can't it?
I don't think it's anything to do with the protocol - the vat issue is outside of that.
Both the VAT issue and PPI are recent innovations.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
When i started out with my iva i was assured that the terms and conditions were lawfully set in stone,so after 5 years if i honoured the terms and conditions then i am entitled to a completion,not to have to wait for several months.
Last edited by MRBLUESKY on Wed Nov 23, 2011 8:06 pm, edited 1 time in total.
You will get a completion - it just might take time these days. Did your paperwork state that your completion would be within a certain time frame? I know mine doesn't.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Whilst I agree with you, that's the way it is at the moment and there's nothing we can do about it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Many thanks for all your responses!! Greatly appreciated.
It does seem very unfair that some are completing despite this new issue with VAT Refunds, whereas other IP's are choosing not to complete. It is especially frustrating when I am told by my IP that 'their hands are tied' and given the impression that it is the creditors who are being unreasonable when in fact it looks as though they might well have some flexibility after all!!
They did say on the 4th Oct that it should be resolved in just over a month, obviously that hasn't happened, so I chased them up to be told they have no idea when its going to be sorted.
I think I will email them again now I know that some companies are still completing despite these changes, as they are telling me quite clearly that IP's are NOT able to complete, which is obviously not the case.
Last edited by Atomik1 on Thu Dec 01, 2011 10:57 am, edited 1 time in total.
My biggest concern regarding this is that different IP's are treating the situation very differently, this is grossly unfair, who regulates them?, the regulatory body should be ensuring that all IP's are going by the same book regarding this, so they either all make everyone wait until the issue is resolved, or all close off IVA's and recoup the VAT afterwards, it is wholly unfair that people are being treated so differently dependent on who their IP is
