Completion Delay Due to VAT

2e1var

I made my final payment on my IVA back in August, I had heard that there could be long delays in completion due to IP's having to chase creditors so was not too worried. However having spoken to my IP I am now told that the delay is due to them having to reclaim back VAT (I assume on their fees). As far as I can tell I can't see any hard and fast rules on this anywhere.
It would appear that some IP's complete their clients arrangements then claim back the VAT afterwards, why not all ?
Surely there is a time frame between final payment and issuing the certificate of completion that they must adhere to ? 6 months is a bit much in my opinion !
Does anyone have any advice on how to speed things up ?

Thanks

Richard

FoggyBrain_2

Hi. This VAT malarky was sprung on the IP's out of the blue, following a recent court case which ruled that VAT wasn't chargeable on IVA payments. So this has had to be reclaimed and paid into each individual IVA pot to be distributed to the creditors. Over the past few months some IP's have carried on completing, some stopped, restarted and stopped again! But now, I believe, most are carrying on and completing, now that HMRC have started responding to claims. However all of this has resulted in a back log!

I agree that, without all of this, those IP's that take 6 months to complete are taking the Mickey, when some, very good firms have alaways managed to complete within weeks. It seems, the larger the firm, the longer they take!

There is very little you can do to speed this up, other than keep on their backs.

kns_2

I can answer this one for you as I was in the same boat.
I made my last payment in October 2011 and they extended the arrangement for 6months to claim the vat back so this gave them until March 2012.
You don't have to make anymore payments as it has finished,you just need your certificate for it to be final.

My IVA Company started completing again last month but had to clear there back log.
I received my certificate of completion last week and it feels fantastic to know your debt free:D

I would not worry about it as it stays on your credit file for another year anyway.
They are quick in removing your name from the insolvency register though:D
My name was taken off within 5 days.