So in reality what does that really meant to folks currently in a PTD, does it make any difference.....?

Hi Porcupine

It wont affect current cases.

It is interesting though as we need to show VAT on fees when submitting the proposals to creditors. Without the VAT element, the fees will be shown 20% less, therefore the dividend will be higher, so it should make the Trust Deed easier to be accepted.

Mark

Hi

Although this ruling gives the Trustee the right to go back 4 years, as Mark says,it will not affect any of you, as it will not delay any discharges.

I am guessing that is good news for me and maybe my discharge will get back under way and I may get a better Christmas than expected. Am I right in thinking that it should be as simple as to remove the VAT from fees in my case and put them back in the pot and arrange my final meeting which we were paused at?

Hi gemgem.

Things may not be entirely straightforward depending upon the view taken by any individual trust deed provider.

As they were charging VAT, trust deed firms were also able to recover VAT on their purchases. If they aren't going to be able to collect VAT on their fees for work done, they'll also need to recalculate their costs which effectively will increase if the VAT elements cannot be reclaimed.

If this does go ahead there will be a bit of sorting out to do internally at the affected firms.

Hi

that is correct, and some firms may decide it is not worth claimimg the VAT back. However, some of the big debt recovery firms are already asking Trustees to claim this money back. It may prove to be not very cost effective for the Trustees, as well as a lot of work involved, but big collection companies may gain.