Hot of the press is news that in the case of Paymex Ltd v HMRC, the VAT Tribunal have held that nominees’ and supervisors’ fees in an Individual Voluntary Arrangement (IVA) to constitute a single exempt supply for the purposes of VAT under Article 135 (1) (d) of the Principle VAT Directive (2006/112/EC).

We understand that HMRC will not be appealing the Tribunal’s decision but that a Business Brief setting out their response to this decision will be issued shortly.

This will have an impact on any advisor involved in providing insolvency advice. We will keep you updated, but in the meantime, if you would like any further advice on this issue, then don’t hesitate to get in contact with John Crawford at john.crawford@thevatconsultancy.com.