I successfully completed my IVA last year and received my CofC. My question is: How can the supervisors be allowed to charge an extortionate 25% on all individual statutory interest payments on successful PPI claims?
Thanks Foggy, but i was charged separately for tax. I thought this was a ridiculous amount, afterall, they charged me just over a quarter for my IVA....
Yes, statutory interest £902.72;= £180 HMRC tax,Supervisor fee =£225.68 no claims management fee as I was the one that made the claim. No 2 was statutory interest £92.25; no tax, claims management fee= £35.98 and supervisor fee= £23.06. Does that sound right to you???
I assume that claim number 2 was made through a claims management firm.
Which firm are you with ? 25% Supervisors fee does seem excessive. Some firms have tried to increase their fee structure from the usual 15% to 23%, but I have not come across 25%.
What fees were agreed in your proposal / chairman's report and have there been any variations agreed ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Yes, claim 2 was made by EIC. I was with BE but GT took over. I've read the original documents from BE and it states: 'Supervisor Fee exc. VAT will be equivalent to 15%. When I contacted GT they informed me I signed their t&c's, to which I truly do not remember but I have requested a copy of the doc (still waiting) as I was also surprised that I wasn't sent a copy for my own records??? I must add that at the time of the change over I was just so relieved that I was getting things sorted as I was so stressed out, and I know it was my own stupid fault, and for years my daughter and I suffered terribly. However, I do feel slightly peeved re their charges.
Thought supervisor fees weren't vat rateable as statutory function?
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I don't know what the rules are, but I intend to find out. I've started the ball rolling by making a formal complaint to GT, and I wont stop until I'm satisfied.
Thanks to all who have responded and feel free to continue having your say as I'm truly interested.
I know when I was "taken over" by GT they attempted to increase fees with the issue of the, now infamous, "Spotty Letter" (you couldn't forget getting one of those -- envelope covered in purple spots !). Maybe they were more subtle with your take over !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lifenoteasy
Thought supervisor fees weren't vat rateable as statutory function?
This was decided in the courts. However HMRC are taking the stance that this only applies to the originally appointed Supervisor and that VAT is chargeable on fees of a subsequent Supervisor.
I must admit that I have lost track of where this was going!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
• If the nominee and supervisor are in the same firm then their services to the debtor would comprise a single exempt supply.
• Where a supervisor from a different firm is appointed either at the creditors meeting or subsequently as a successor IP
The supervisor’s fees will be standard rated.
• Where a new firm acquires a portfolio of cases and a new supervisor is appointed
The supervisor’s fees will be standard rated.
• Where a new firm acquires a portfolio of cases but the supervisor moves across with the cases so remains in office
The supervisor’s fees will be standard rated.
• The only exception would be if an IP can demonstrate that the core part of their service as supervisor is debt negotiation, in which case HMRC would consider exemption. However as this is usually not the prime purpose of the supervisor or the main role that a supervisor undertakes this situation is unlikely to arise in practice.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
