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Written question asked by Yasmin Qureshi (Labour) on Wednesday, 29 January 2020, in the House of Commons. It was due for an answer on Monday, 3 February 2020. It was answered by Chris Philp (Conservative) on Thursday, 6 February 2020 on behalf of the Ministry of Justice.


Debts: VAT

Question

To ask the Secretary of State for Justice, whether he is taking steps to compensate debtors who have been charged VAT on debts under the incorrect application of the Taking Control of Goods (Fees) 2014 Regulations.

Answer

As the recipient of High Court enforcement services, which are subject to VAT, creditors are liable for VAT on the fees charged by High Court Enforcement Officers. Creditors who are VAT registered are in turn able to recover VAT from HMRC, subject to the normal rules.

Under the Taking Control of Goods legislation, however, there are circumstances where this cost may be recovered from a debtor as part of enforcement costs. The Ministry of Justice is in the process of clarifying the circumstances and manner in which a cost equivalent to VAT may be recovered from a debtor and intends to publish guidance on this shortly.


Secondary information

Type
Written question
Reference
9643
Session
2019-21
Related items
Debts: VAT
Tuesday, 18 February 2020
Written questions
House of Commons
Transferred
Yes
Subjects
Compensation Debts VAT
Legislation
Taking Control of Goods (Fees) Regulations 2014
Link
View this Written question on www.parliament.uk