V.A.T on enforcement of high court writs is entirely legal
its not exactly a new subject, but there is still a lot of misunderstanding about this. Leading to many initiating costly and unnecessary Detailed Assessment Hearings.
The current debacle regarding who pays VAT on fees, refers to fees paid by the creditor to the HCEO or their employees for their services.
This is where the confusion arises. It is not about the payment of VAT by debtors to enforcement agents, which is calculated on proceeds. That is well understood, and decided.
Debtors are liable.
Bennison seeks to con you into masking bogus claims and applications, so he can charge you for drafting ridiculous and redundant documents.
Seek proper advice if you are unsure.
The HMRC says that VAT which are chargeable to the creditor, on his fees, are paid by the judgement debtor.
Unless he is VAT registered.
This does not apply. to VAT on fees collected by self employed EA, contracted by the Governor under section 2.4 of the Courts Act 2003.
These are self contained businesses who are responsible for their own tax receipts and payments.
It really is pointless checking whether the creditor is VAT registered in these cases. Because Jason Bennison is wrong again. As the phrase goes.
In passing the HCEO gain no advantage from collecting VAT, they are just a conduit to the taxman and could well do without the expensive hassle.