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VAT and IVAs: HMRC invite repayment claims

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HMRC are not appealing against the First Tier Tribunal decision in Paymex Ltd (TC 1210), published last month.

As Tax Journal reported on 24 June, the tribunal held that supplies made in connection with the establishment and supervision of individual voluntary arrangements for consumers who had fallen into financial difficulties were VAT exempt under Article 135(1)(d) of EC Directive 2006/112/EC.

‘The tribunal decided that the services of an insolvency practitioner, including both the nominee and supervisory stages, constitute a single exempt supply for VAT purposes,’ HMRC said.

HMRC will meet claims for overpaid tax charged on insolvency practitioners’ services that ‘fall within the findings of this tribunal decision’, subject to the normal rules on input tax adjustment, capping and unjust enrichment, HMRC said in Revenue & Customs Brief 27/11.