My interpretation of this particular opening post was this
J.ct entered in to an IVA part way through a tax year. At the end of that tax year his P.60 showed a higher income than was stated in his proposal. I have assumed that at some point earlier in that tax year and prior to entering into an IVA, j.ct had received a bonus of some description. Now on reviewing his P.60, the administrator handling J.ct's affairs has quite rightly noticed that the salary shown is in fact higher than stated in the proposal, but that same administrator has failed to properly investigate further and question J.ct and ask when that additional income was received. I suggested it was not to be paid in to the arrangement on the basis that it had already been earned prior to J.ct entering in to an IVA.
That was my interpretation, which was admittedly an immediate one, without asking for further clarification. Having considered subsequent posts, I am still of the opinion that additional payments are not due, though for the reason that those additional payments were clearly received in a tax year prior to the IVA being approved.
I would follow up on Andy's suggestion and ask why the 2005/06 year is being reviewed.
Of course, if you, J.ct are self employed, then that is a whole different kettle of fish and if in fact a refund of Tax is due, it could either be offset against any Crown liability or if it is refunded, then as Melanie suggests, the monies DO have to be paid in to the IVA as a windfall.
So the question at the moment as asked by Melanie ... Are you employed or self employed?
Tell it like it is.
Tell it like it is.
