Commentary

RCB/35/11 VAT tribunal decision in the case of Paymex Limited v HMRC

Part V16 Forms and other HMRC material

RCB/35/11 VAT tribunal decision in the case of Paymex Limited v HMRC

RCB/35/11 VAT tribunal decision in the case of Paymex Limited v HMRC

Revenue & Customs Brief, Issue 35. 20 September 2011

HM Revenue & Customs (HMRC) recently issued a Business Brief (Revenue & Customs Brief 27/11 (RCB/27/11, Division V16.3)) in response to the VAT Tribunal decision in the case of Paymex Limited v HMRC, dealing with the VAT liability of services provided by an Insolvency Practitioner (IP) in an Individual Voluntary Arrangement (IVA).

Following on from the above mentioned Business Brief, HMRC wishes to offer further clarification on the following points which may be of interest or concern to the insolvency profession:

1 General

  1.  

    —     Although the Tribunal decision itself applied purely to consumer IVAs, HMRC considers that the terms of the Tribunal decision read across to all IVAs. The important point for IPs to consider here is not the specific type of IVA but rather whether the nature of the services they provide are covered by the terms of the Paymex Limited ruling.

  2.  

    —     Although HMRC does not consider the terms of the Tribunal decision to be restricted to a particular type of IVA, the Tribunal decision does not deal with Company Voluntary Arrangements (CVAs) or Partnership Voluntary Arrangements (PVAs). If IPS consider, on the basis of the Paymex Limited ruling, that they have overpaid VAT arising from their role as supervisors of CVAs or

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