Chewing the VAT...… Just. Lead the Way for Reform with VAT on High Court Enforcement Fees



The High Court Enforcement Officers Association (HCEOA) have followed through on a campaign led by Just. The enforcement market integrator, to address who pays the VAT on High Court Enforcement fees.


It has long been the opinion of Just, and Court Enforcement Specialists for that matter, that VAT should never be payable by the debtor, as this just exacerbates their problem with owing money.


The HCEOA has told its members to change their VAT policies as soon as it is practically possible, and at the very latest these new polices should come into effect from the 1st August 2021.


Following on from discussions with HMRC and the Ministry of Justice, the new procedures are separated into categories for creditors who are VAT registered and creditors who are not VAT registered.


It makes sense…


In the case of VAT registered creditors, VAT should be charged to the creditor and never to the debtor.


For non-VAT registered creditors, it is recommended that a sum equivalent to VAT should be charged to the debtor, with no VAT invoice being issued.


As you can see, this only goes part way to achieving the Association’s and our members overarching aim, which is for enforcement fees to be treated as though they were zero rated, but at least it’s a start.


Spearheading this campaign, has been Jamie Waller, of Just, who said:


“This outcome in our view demonstrates why an integrator in this industry can provide increased oversight and drive changes that deliver better outcomes for those in debt, and those needing to resolve problem debt. I am pleased that my team at Just lead this to a part conclusion, and look forward to a full conclusion later this summer.”


So, there is clearly more work to be done in this area in order to protect debtors from becoming further bogged down in unnecessary and unfair VAT charges, but it’s progress in the right direction.


#TeamCES welcomes this decision and we look forward to seeing how things develop over the summer, and to hearing more from the HCEOA on what happens next.


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