PPI Claim & VAT

SLS722

Hi I have used a company in the UK to reclaim my PPI and am okay with the fee 25% plus 20% VAT (works out 30%) - but I live in Jersey and we do not have VAT - can they still charge me this does anyone know? Thanks for your help.

ppi-advisor

SLS722 wrote: »

Hi I have used a company in the UK to reclaim my PPI and am okay with the fee 25% plus 20% VAT (works out 30%) - but I live in Jersey and we do not have VAT - can they still charge me this does anyone know? Thanks for your help.

Hi SLS722,

As a PPI Claims advisor charging for the services. This is a new one to me as I have never come across it before. Thank you for highlighting this potential issue.

after doing a small amount of research online I have found this article:

VAT on services

UK VAT may need to be charged on services performed in the Islands or to clients based in the Islands, depending on the nature of the service supplied. This is a complex area, but broadly, assuming the supplier belongs in the UK and the customer belongs in Jersey, UK VAT will need to be charged on most services unless one of the following exceptions applies:

• UK VAT does not need to be charged on most services relating to land or property situated in Jersey. This includes estate agency, conveyancing, architects, surveying, construction, property maintenance, hotel accommodation, defined exhibition stands, and property management services.
• UK VAT does not need to be charged on most services related to a live event or physical activity carried out in Jersey. This includes cultural, artistic, sporting, scientific, educational, training, entertainment, exhibition and valuation services.
• UK VAT does not need to be charged on passenger transport carried out in Jersey.
• UK VAT does not need to be charged on most ‘intellectual’ or ‘intangible’ services supplied to a customer who belongs in Jersey. This includes copyright, royalties, licences, advertising, consultants, engineers, lawyers, accountants, banking and insurance. If the service relates to land or property situated in the UK, VAT still needs to be charged.

Personally I would say that you are not required to pay VAT on the service you have used with a claims company. My understanding is that if you have already paid it. You can be re-imbursed.

Regards

Aaron