The above brief explains HMRC's position following the First-Tier Tribunal decision in Paymex Ltd (Case ref (2011) UKFTT 350). HMRC advise that they will not be appealing this decision and subject to the normal rules on input tax adjustment, capping and unjust enrichment, HMRC will pay claims for overpaid tax charged on the services of Insolvency Practitioners that fall within the findings of this Tribunal decision.

For a summary of the First-Tier Tribunal's decision, see Chartered Accountants Tax Case Digest on here.

HMRC Brief 27/11 is available from http://www.hmrc.gov.uk/briefs/vat/brief2711.htm