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HMRC has significantly broadened the scope of Insolvency Practitioner services that it will now regard as being exempt,  having published its 'final' word on the Paymex Case (Paymex Limited v HMRC [2011] UKFTT 350 (TC)) in Revenue & Customs Brief 03/12

Previously, HMRC had said that the "Paymex exemption" only applied to Individual Voluntary Arrangements or IVAs and specifically that any VAT refund claims in respect of Company or Partnership Voluntary Arrangements would be rejected (see Revenue & Customs Brief 35/11) but the latest Brief has now extended the exemption to include all of the following:

• Individual Voluntary Arrangements (as before)
• Company Voluntary Arrangements
• Partnership Voluntary Arrangements
• Protected trust deeds (applicable only in Scotland)

such that those 'previously rejected' claims should now be treated as valid. This will come as no surprise to many VAT practitioners, who queried the distinction that HMRC had made in its earlier Briefs.