Change for VAT on Enforcement fees

Following government guidance the High Court Enforcement Officers Association has recommended changing the way in which VAT on High Court Enforcement fees is treated.

This change is particularly important where a Judgment creditor is VAT registered.

Where a Judgment creditor can recover VAT from HMRC

Where a judgment creditor is VAT registered enforcement agents will now not recover VAT on their fees from the judgment debtor. Instead, enforcement agents will be deducting a sum which is the equivalent of the VAT payable on their fees out of funds recovered from the judgment debtor. The VAT will therefore be paid directly to HMRC and not to the Judgment creditor.

Judgment creditor can then claim this VAT from HMRC.

Where a Judgment creditor cannot recover VAT from HMRC

Enforcement agents will collect a sum equivalent to the VAT from judgment debtors and then pay this sum to HMRC. If you would like to know more about the enforcing debts please contact Aimée Redican by email: or phone: 01543 420495.

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