There are more issues relating to distributing money as a Trustee than as a Supervisor of an open case - so this may be why your own IP is being cautious.
Not a problem now Paul - I have found a satisfactory way forward for my firm and my clients, so we are closing cases again! Although my colleagues in our Glasgow office do seem to be very on top of the VAT issue, but as you say it is simpler north of the border.
Well done Melanie and what a bonus for your clients, all of whom will be very appreciative i'm sure, hopefully others will now follow suit as they say.
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.
At least OP received a letter advising of the delays. I was aware of this issue previously but IP's were still closing cases. I didnt discover that it was delaying my completion until I chased my IP recently.
Atomik - the IPA issued guidance in January that might shed some light on the issue:
"Where possible, cases which would otherwise be due for closure should be kept open where a claim has been or is to be made either by exercising the discretion usually included in a proposal or by seeking a variation. This is because a Supervisor is likely to have more extensive powers in an open case and could therefore deal with the issue more easily. As this appears to be a proper exercise of the Supervisor’s powers, criticism would be unjustified."
same issue,
finished my iva with payplan, in january after paying £1300, ip told my it would take 6-8 weeks to complete.i
chased them after 10 weeks to be told there was a hold up with accounts. when i pushed to know what the hold up was told they where then applying for a vat refund on my plan to pay more to the ceditors and could take another 3 months to complete.
i asked if i recieve the refund as i have paid my final payment and through my iva was subject to the increase in tax affecting my iva,not the decrease in vat i might add.
have heard nothing back from payplan.
i feel very cheated here
also my question is ,if the ips can get vat refunds on the tax paid on an iva,
why cant i ?
i paid tax on iva at 17.5 % when vat was 15% also and then 20% when it increased.
it seems very unfair that ip's can claim back the tax on the increased iva cost due to tax which many including myself struggled to pay.
I think the VAT refund is in the IP fees, which were agreed originally by creditors, therefore it follows that if there is a VAT refund then it belongs to the creditors...
I agree - if vat hadn't been added to fees there would have been that much more available to creditors.
It's a real pain, however the IP's hands are tied and we must remember that it is just as important to many others that don't post on the forum. Hopefully as time goes on the backlog will sort itself out and things will settle down.
adycambs, it seems like this issue hasn't been properly explained to you.
Up until 2011, most IPs charged VAT on their fees as you might expect. In May 2011, one firm called Paymex won a VAT tribunal which ruled that IP fees should not in fact be subject to VAT.
This affected all IP firms as they had a duty under Insolvency Law to put a claim in to HMRC to retrospectively recover all of the VAT that they had previously charged on their fees. This recovery of VAT is purely for the benefit of the creditors, not for the IP firms or the debtors.
For some of the larger firms these claims would have amounted to millions of pounds, so unsurprisingly HMRC are taking an extortionate amount of time to agree and settle the claims.
IP's were initially advised by their regulators that they should not close cases until the VAT refunds have been received. Most IP firms have now obtained legal opinion that in fact does allow them to close cases in most instances, but unfortunately for you Payplan are one of the few who appear to still be keeping cases open until they receive the VAT refund.
What I don't understand is why you were not made aware of this issue in January - telling you then that your case would be closed within 8-12 weeks seems somewhat irresponsible.
Last edited by vince666 on Wed May 16, 2012 6:59 am, edited 1 time in total.
Hi Gemma, its good to see that you are still posting and helping payplan clients and of course offering advice to others
many thanks for your continued support
"Always remember that the future comes one day at a time."
IVA completed . Just started a blog, if you get chance please take a look. http://rich.blogs.iva.co.uk/
