House of Lords members thank Just for driving the MoJ to clarify the legal position for charging VAT

18 January 2022

Members of the House of Lords have thanked Just for driving the Ministry of Justice to clarify the legal position for charging VAT which lead to some of the most vulnerable debtors in society savings tens of millions of pounds.

The Ministry of Justice (MoJ) issued legislative guidance confirming that where creditors are registered for VAT, the debtor should not be charged an enforcement fee to cover the cost of it, as it’s recoverable from HMRC.

This clarification brings a conclusion to the long-running campaign spearheaded by Just, the enforcement market integrator with the support of parliamentarians and the debt advice sector. The outcome will save debtors millions of pounds each year of unnecessary enforcement charges while still maintaining creditors' access to justice through the use of High Court Enforcement Officers at no additional cost. The published guidance can be read here.