VAT on High Court Enforcement Fees
I am writing to you to clarify our Company and the High Court Enforcement Officers Association’s (HCEOA) position on VAT for High Court Enforcement Fees.
This is in response to a letter you may have received from another High Court Enforcement company. The letter has raised the issue of charging VAT to debtors on fees and referred to a written answer by a Minister in the House of Lords.
The HCEOA have received guidance which has been approved by HMRC and states that VAT is recoverable from the debtor, however it is irrecoverable by them.
Since 2000 following extensive discussion with the VAT Policy Directorate, the HCEOA has advised its members that VAT applies to debtors. In addition, the Association sought further clarity and received legal opinion of Christopher Wilson of L G Williams & Pritchard on 22nd February 2016. As recommend, the Association also referred to Anne-Marie Goddard at the Ministry of Justice, who confirmed that there was no need to seek further opinion.
Court Enforcement Services Ltd was founded after the new regulations and operates within the Taking Control of Goods Regulations, and those of the HCEOA. High Court Writs are directed to our Authorised High Court Enforcement Officers, who are also Directors. They sit on our board and are bound by their Association – the HCEOA.
The HCEOA has advised us to continue to charge VAT as at present.
Should there need to be a change of practice we will of course notify you immediately.
If you would like to discuss the matter further, please do not hesitate to contact us: firstname.lastname@example.org
Thank you for your continued support.
Alan Smith & Malcolm Davies
Authorised High Court Enforcement Officers
Directors – Court Enforcement Services Ltd