Help Please

[PaulUK]

Hi,

I hope this is in the right section.

I have been approved for an IVA with Grant Thornton. They are telling me that because I am self employed my first 10 payments will be £600 but the remaining 50 @ £234.

Please can someone explain why? They have adviced me not to make a £2k payment tomorrow to the Inland Revenue that is due, is this correct?

I am very confused!

Thanks

Paul.

[Viki.W]

Hey Paul, welcome to the forum. Please wait for an expert to advise you. The Inland Revenue is probably one of your creditors as you are self employed so I'm sure the info is correct but I think that Grant Thornton really need to explain EVERYTHING to you so you completely understand. X

[Lisa2009]

Hi Paul.
Will your circumstances be changing after the first 10 payments? i.e mortgage increase.
That would explain why payments will then be reduced.

As for the Inland Revenue, if they are one of the creditors included in your IVA then i would assume your IP is right to tell you not to be paying them as it will then be seen as preferential treatment.

One of the experts will explain and advise further im sure so sit tight, it wont be long.

[plasticdaft]

Is the 2k due to the inland revenue part of your iva debt??

[MelanieGiles]

It is odd that this has not been properly explained to you. The additional payment results from the fact that your tax for fiscal year 2008/2009 is a claim in the IVA, and therefore not payable to HMRC. In the circumstances you do not need to set money aside for your tax bill in this year, as you will in all subsequent years, so this money is paid into your IVA for the benefit of all creditors.

Likewise any monies due for 2007/2008 due on 31 July also form a claim in the arrangement.

[PaulUK]

Thanks for all the replies.

Melanie, so the Tax Man doesn't require any money for one tax year? That seems amazing...

[MelanieGiles]

I never cease to be amazed about this loss of revenue for the Exchequor Paul - but it is definately the case!

[PaulUK]

Melanie,

Sorry to be a pain.......one more question.

When will I again have to start making self assessment payments? I need to know when to start saving for the next dreaded tax bill.

Thanks again for all your help.

Paul.

[MelanieGiles]

You will need to start providing for your 2009/2010 tax bill with effect from 6 April 2009 - and the first payment towards that will need to be paid to HMRC on 31 January 2010.

[PaulUK]

Thanks Melanie....Your a Diamond!

Paul.