Hi jt222.

I think you quickly need to write to your trustee personally setting out the position regarding the VAT.

A letter from your accountant might also be helpful.

My only point of contact is the girl in the call centre. My accountant has sent an e-mail explaining the situation some time ago which received no response. I have been waiting since before Xmas for somebody more senior to get in touch but have had no contact whatsoever.
When the TD was set up I had a figure in there owing to HMRC which I pointed out should be higher but I was told that the exact figure would get sorted out once the TD was protected and that HMRC where often slow in getting back. Is it possible that the monthly payment that I make does not leave enough for the IP to get a decent return so he is taking all my payments so far and using any excuse to get rid of me?

Honestly, no.

Your trustee must have reason to believe that you're not complying with the terms of your trust deed.

I'm suggesting you write to them personally so that you can explain your case (the case you feel hadn't been understood by your contact).

Thanks for your replies. The only address I have for the guy is the head office of the call centre so I don't hold out a lot of hope of getting in touch with him. He doesn't even sign his own letters personally. Maybe I am naive but I thought these people were meant to help you not just grab what they can and run. All they have done is take my payments, check for PPI and head for the hills

The trustee will genuinely believe that you're not in compliance jt222.

As well as writing to him/her personally, if you believe that this is an unfair outcome you may wish to quickly raise a formal complaint.

That's a second way to get someone senior to review the situation.

Hi jt222,

Within the letter which you have received does it give you information on an official appeal regarding this course of action?

As TDA has advised I would contact your Trustee as soon as possible to try and avoid this and resolve the issue and confusion surrounding the VAT. I would make it a priority to call them today and ask to speak with a more senior member of staff than the one you have previously been dealing with.

If speaking with someone more senior on the phone doesn't work then you could correspond via email and in writing and address this directly to your Trustee.

Failing that you could drop into their office and ask to speak with someone. From time to time my clients will drop into our office to discuss their case with me or hand in any paperwork. Sometimes sitting down and discussing things round a table allows everyone to see each other's point of view.

During the course of a Trust Deed but particularly at the outset is where the majority of the work is done in setting up the Trust Deed, making the proposal to creditors and registering the Trust Deed as protected. The Trust Deed is effectively front loaded with fees and costs and it's not until later on in the Trust Deed that the pot for creditors starts to build up.

At the outset the firm that you use will project what their fee will be to administer your Trust Deed. I don't think that the Trustee will be releasing you from the Trust Deed on the basis that there isn't enough money for the IP. The IP's fees are deducted first along with the outlays and whatever is left is the amount that is paid to creditors.

The worst case scenario is that if your Trustee does follow through and release you from your Trust Deed you could always consider another Trust Deed with a different firm. There would be no guarantee that a new proposal would be accepted by creditors but in my experience there normally isn't a problem.

You do have a right to appeal against this, which should be set out on the letter they sent to you, jt222. Did the letter make mention of your rights in this regard?

As David says, there is always the option to sign a Trust Deed elsewhere if it is still the best way forward for you, but with a Trustee that understands your situation better!

As soon as call centres are mentioned it rings alarm bells for me - these types of set-ups save costs for the firm no doubt, but in my experience are often the detriment of good quality service.