Our original Blog article explained that
in some circumstances where you pay VAT reclaims into the ISA, and the original
expenses that the reclaims related to had been through the account and attracted
SOS fees, the VAT reclaim should not attract SOS fees again. Where these have been deducted, Estates
Account Directorate (EAD) may be prepared to refund them subject to you
providing evidence that the original expense was paid from funds that were
subject to a prior SOS fee.
We recently checked with EAD because we had been hearing
worrying suggestions that they might be trying to wriggle out of refunding
incorrectly drawn SOS fees. They have
confirmed that although they are seeking advice on the subject, they are paying
out any incorrectly drawn SOS fees where the IP provides the required
evidence. There is, however, a
problem. When the Insolvency Service
migrated to its new IT system it has created a huge problem for EAD in that
they cannot currently pay back monies on receipts received before October
2010. This problem has a wider impact
that takes in rebates due in annulment cases and similar scenarios and we
understand that they are currently seeking a solution.As with all things to do with IT, it seems best to wait a reasonable period to give EAD a chance to resolve the issue before getting too excited on this Blog. However, if the delay is causing you problems in specific circumstances we’d be happy to hear about it.
