Debt Collection: VAT

Ministry of Justice written question – answered on 17th November 2020.

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Photo of Alex Cunningham Alex Cunningham Shadow Minister (Justice)

To ask the Secretary of State for Justice, when his Department plans to publish guidance on the application of VAT on judgement debts in the cases of High Court enforcement.

Photo of Alex Cunningham Alex Cunningham Shadow Minister (Justice)

To ask the Secretary of State for Justice, what assessment he has made of the effectiveness of different practices employed by enforcement agents and High Court enforcement agents in relation to charging VAT to debtors.

Photo of Alex Cunningham Alex Cunningham Shadow Minister (Justice)

To ask the Secretary of State for Justice, what recent assessment he has made of the level of consistency among High Court enforcement agents when applying VAT on their fees in identical circumstances.

Photo of Alex Chalk Alex Chalk Assistant Whip, The Parliamentary Under-Secretary of State for Justice

The Ministry of Justice is aware that there are differing interpretations within the enforcement industry of the application of the VAT payable on High Court Enforcement fees, which has led to different approaches being taken.

We are working to produce guidance to clarify the circumstances and manner in which VAT costs can and should be recovered from judgment debtors as an enforcement cost. We will publish that guidance as soon as we are able to.

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