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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4424
Experience:  FCCA FCMA CGMA ACIS
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My client is a member of the Institute of Chartered Accountants

Customer Question

My client is a member of the Institute of Chartered Accountants of England and Wales.
He has agreed to pay a proportion of the Institute’s costs as a result of a disciplinary finding against him
Is the payment inclusive or exclusive of vat?
LH
7 March 2016
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Having looked at the Institutes records of costs and other awrds paid I can find no mention of VAT being applied which I must say rather surprised me. However, if the Institute have not issued a VAT invoice, one must assume that there is no tax involved. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.
KeithThank you for your prompt reply.I am questioning the institute's view that the payment should not be subject to vat.
The way I see it is that they should be billing my client for his share of the expenses that they the institute are required to pay for their own time and the time of the discipline committee.The amount he has to pay is a fixed amount and is only a proportion of the total costs that they are required to pay. The fact that you have not been able to find previous circumstances where they have not raised a vat invoice, surely does not mean that they are treating it correctly?
Expert:  bigduckontax replied 1 year ago.
If they did this their bill would have VAT added which could be reclaimed if your client is registered for VAT. If he is not then he should emulate Brer Fox, for he lay low and say nuffin, and just pay the bill as demanded by the Institute. Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 1 year ago.
KeithThe amount is a fixed amount in a signed agreement. My client is a director of his limited company accountancy practice which is vat registered and any payment would be classified as a cost necessary for his business. He purposely agreed the amount without raising the question of vat. He now feels that the amount is inclusive of vat as it is a contribution to costs which his institute has to pay
Expert:  bigduckontax replied 1 year ago.
He cannot reclaim this VAT, if indeed it were included in the Institutes charges, without a formal VAT Invoice which he would have to obtain from the Institute.
bigduckontax and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.
The institute has issued a fee note and say it is not subject to vat. My client want's to challenge it. He has not authorised me to incur the cost of a telephone call which I think is now needed rather than email back and forward. Please call me on 07469-859854. Keith we are no further on from when we started this discussion
Expert:  bigduckontax replied 1 year ago.
I am on 01750 725420
Expert:  bigduckontax replied 1 year ago.
Thsnk you for your support.
Expert:  bigduckontax replied 1 year ago.
Unfortunately BT does not recognise your number. Perhaps you had better ring me, I am on 01750 725420.
Customer: replied 1 year ago.
Why have you taken £38 from my account without my authorisation
Expert:  bigduckontax replied 1 year ago.
I have not, the Just Answer system has charged you for the agreed telephone consultation which cannot proceed at present as I have explained.
Customer: replied 1 year ago.
I have not authorised the £38 no matter who has taken it. Please arrange for Just Answer to refund the £38 and provide the telephone conversation free.
Expert:  bigduckontax replied 1 year ago.
You must approach Just Answer Administration for a refund of your telephone conversation fee which has not been used.
Customer: replied 1 year ago.
My client is very unhappy as to the way this enquiry has progressed. You haven't answered his question which was does the vat legislation confirm the institute's treatment of this matter as my client would like to challenge itTo avoid my client progressing down a client who is dissatisfied with the way Just Answer have dealt with this matter, I suggest the £38 is refunded as my client clearly didn't agree to it or you answer the enquiry fully with supporting evidence for the initially fee paid
Expert:  bigduckontax replied 1 year ago.
I have already told you refunding the telephone fee is outwith my powers and you must approach Just Answer Administration for the refund as no telephonic contact was made. Your client can only reclaim input tax if a VAT invoice is available. The Institute say that there is no VAT in this matter so there is no voucher available to support a claim.
Customer: replied 1 year ago.
That is not what I am asking. You are the technical vat consultant.DOES THE VAT LEGISLATION SAY THE INSTITUTE ARE CORRECT IN THESE CIRCUMSTANCES NOT TO CHARGE VAT - YES OR KNOW?
Expert:  bigduckontax replied 1 year ago.
Whether the Institute is registered for VAT and charges VAT on its invoice is a matter between the Institute and HMRC. If the Institute says there is no VAT applicable then that is an end to the matter.
Customer: replied 1 year ago.
I am very dissatisfied with the way you have handled this matter.
Please provide contact details for someone in authority at Just Answer so that I can discuss my dissatisfaction or I will comment on their web site
Expert:  bigduckontax replied 1 year ago.
If you find my responses not to your satisfaction you can approach Just Answer Administration for a refund of your fee. You will find a link on your screen display.
Customer: replied 1 year ago.
What is the link to Just Answer Administration please
Expert:  bigduckontax replied 1 year ago.
You will find it somewhere on your screen display. I do not have access to that display.
Customer: replied 1 year ago.
I cannot find it. Please provide the link as I am becoming more and more exasperated !!
Expert:  bigduckontax replied 1 year ago.
It is there somewhere, try the red flag.
Customer: replied 1 year ago.
What red flag!! You are employed by this company so please ask the correct person to contact me immediately on 07469- 859854. If I don't hear from someone in the next 10 minutes I will publicise my discontent on the comments section of their website !!
Expert:  bigduckontax replied 1 year ago.
In the top right hand corner of your screen you will find the red flag. I do not have access to your screen so I am unable to be exact. I am opting out of this question.
Customer: replied 1 year ago.
That is typical or your whole attitude to my question. When I am finished commenting on your so called performance I would think you will be "damaged goods"
Customer: replied 1 year ago.
I am drafting my comments on the way you have dealt with my matter which will go live in the next 30 minutes. I suggest that you don't read them as it will only upset you. Can I suggest that you change your name to "Dead Duck on Tax"
Expert:  bigduckontax replied 1 year ago.
On the contrary my replies have repeatedly drawn your attention to the Institute's approach on the matter; there is no input tax reclaimable. If you wish to pursue the matter you must take it up with that organisation. I am not privy to the Institute's arrangements with HMRC regarding VAT.
Customer: replied 1 year ago.
You do not need to be privy to the Institute's arrangements with HMRC regarding VAT. I am asking your expert view as to whether technically the vat legislation allows the institute as a vat registered body to refuse to charge vat on the recharge of part of the expenses they have recovered from my client.
Expert:  bigduckontax replied 1 year ago.
If you have the original invoice you client issued and it has a VAT element, then of course the reclaim can be paid net of VAT leaving the Institute to recover the tax involved.
Customer: replied 1 year ago.
The DC found against my client. Costs were awarded by the DC against my client. My client agreed to pay an amount to the Institute which was lower than the award which was all he could afford. The Institute have had to pay the total agreed costs and expenses and have now billed my client for the lower amount and say that they have not provided a service to my client and therefore there is no vat chargeable but I say that the amount that my client has had to pay is a contribution to the total costs / expenses incurred in running the case and therefore should include vat
Expert:  bigduckontax replied 1 year ago.
In my opinion the Institute's stance on this matter is correct, but I have opted out of this question..
Customer: replied 1 year ago.
Why are you opting out of this question when you have taken our money!!
Expert:  bigduckontax replied 1 year ago.
I have not taken your money. You rated me which released my proportion of the Just Answer fee. I have answered your follow up questions, but reached the point where I was of the opinion that to opt out was the correct solution enanling one of my colleagues to pick up the question.
Customer: replied 1 year ago.
I have not heard from your colleague !!
Expert:  bigduckontax replied 1 year ago.
That entirely depends upon whether one of them is prepared to take up your question. There is no compulsion for anyone so to do.
Customer: replied 1 year ago.
If Just Answer no longer wants to take the instruction then refer the matter to the admin department so that I can get a refund
Expert:  bigduckontax replied 1 year ago.
I cannot do this, you can from your screen display.