It is still up to the individual IP firms - however if they are intending on making a claim to HMRC for a refund of VAT, which is not obligotory, then they would be unwise to be closing cases until the position is clearer as to how the money is to be repatriated to all parties concerned.
So if the client wants to complete, they're not able to at the mo until this dispute between inland revenue and the IVA companies is sorted? or do they have a choice? also how long has this been going on and how much longer do you anticipate it lasting from now?
There is no choice for the debtor in this process, and the matter could take a long time to resolve - I have no idea of timescale as this is largely down to HMRC.
This could go on and on, lets face it HMRC are quick enough to get monies owed to them but probably not so quick in returning it, bad timing as well as Jan returns just gone in, glory to be lets hope you get somewhere with this Melanie.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
As far as the FO is concerned HMRC are a law unto themselves ( actually, in British Law, they practically are!!). As you say, Orchid, bad timing due to returns going in. On top of this the staffing has been drastically cut as well ( and more to go), and they are blessed with an impossibly complicated and almost unworkable tax system and computer system !!!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It's a difficult one, Paul. On the face of it you could say it is HMRC's fault for, apparently, incorrectly insisting VAT be charged. I say "apparently" because they could have been correct and the Paymex judgement was incorrect. However, I think, in the current financial climate, it was simply thought the cheaper option not to press for an appeal, with the associated costs. Had this been brought a decade ago HMRC would have taken it to appeal and beyond (and possibly been proved correct). We will never know.
It's a similar scenario to that pensioner in Wale, that ran from the Police, who tried to stop him for not wearing a seatbelt and a few other offences. They had to chase him, and, when they eventually stopped him, they broke his windows to get him out. He was found guilty in court, but sued for compensation for the damage and "mental anguish" (caused largely by his own actions). It was deemed cheaper to settle out of court than to defend the action!!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am with varden nuttall and my final payment was September 2011.I was informed in october about PPI's which eventually in December the company decided to process completion as it had taken so long for the solicitor to get back to them and i told them i didnt have any.I contacted them again just after xmas and there was one creditor who hadnt cashed the funds.I rang first week in january to be told of VAT issues.Apparently this began in September yet no mention of this to me till now.Its one utter nightmare.When i completed in September i was told 6-8 weeks and everything would be finalised.how wrong they were.Its funny when i contact Joanne o donnell she never answers the phone and returns my call with the words"I have just been looking at your file".I reckon i must be at the bottom of the pile thats for sure.Will try ringing again this week to see if there is a positive outcome.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by helenwaters
I am with varden nuttall and my final payment was September 2011.I was informed in october about PPI's which eventually in December the company decided to process completion as it had taken so long for the solicitor to get back to them and i told them i didnt have any.I contacted them again just after xmas and there was one creditor who hadnt cashed the funds.I rang first week in january to be told of VAT issues.Apparently this began in September yet no mention of this to me till now.Its one utter nightmare.When i completed in September i was told 6-8 weeks and everything would be finalised.how wrong they were.Its funny when i contact Joanne o donnell she never answers the phone and returns my call with the words"I have just been looking at your file".I reckon i must be at the bottom of the pile thats for sure.Will try ringing again this week to see if there is a positive outcome.
Funny, I'm with an IVA company that shall remain nameless in a similar circumstance, but we settled before crimbo they didn't do anything until early jan and all creditors accepted the settlement, I was told there are a lot of files to go through and it should be completed by Feb, so I called last week to be told of this VAT dispute and that it would take months possibly years to resolve, this was never communicated nor all of our creditors, so now they're sat on our money earning themselves interest while we wait wanting to repair our credit rating and of cause we can't until our file is completed, this is completely unfair on the debtor and for what? so the IVA companies can make even more money on our expense!
Last edited by SUPERSTARDJ01 on Mon Feb 06, 2012 8:31 am, edited 1 time in total.
I don't think the IP's are able to earn interest on the funds, as I think the bank accounts used are just interim accounts, where normally not interest is accrued.
Don't hold me to that, but I used to work in finance and dealt with the odd accountant who needed such an account.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
The interest is paid to creditors. Each client has their own individual account and any interest earned forms part of the assets of the IVA. It is not something that the IP firm can take to boost profits.
