HMRC liability during an IVA

[cr15py]

I am about to submit my 2007 tax return - hopefully for the final time, as the company I was a director of has ceased to trade.

Having calculated my tax, I owe £80. Will this form part of my IVA which has now been approved?

Visit my blog at http://cr15py.blogs.iva.co.uk

[pbeck]

Yes, it will, in fact your 2007-2008 tax liability will also be included in your IVA as well, as your IVA has been approved during this tax year.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[cr15py]

Thanks Philip - that's good news, at least I don't have an extra £80 to find!

Should I advise my IP of the liability, or will it all take care of itself?

Visit my blog at http://cr15py.blogs.iva.co.uk

[cr15py]

Also, will this affect my tax code? I am currently on 458L I think it is, which accounts for medical insurance I receive from my employer.

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[Cybus]

I don't believe your Tax Code will be affected by what is on your Tax Return as the liability of £80 is to be included in your arrangement.

Presumably you will no longer be in receipt of Medical Insurance since the Company paying it has ceased to trade. Your P11d will reflect benefits received from the Company up until it ceased to trade and it is usually through the processing of this form by H M Revenue & Customs that your Tax Code may be adjusted to recover the Tax Element due on that benefit.

Tell it like it is.

[cr15py]

I am still receiving medical insurance. That is through my full-time employment. The reason I had to complete a Tax Return is because I was a director of my own company, which I have now ceased (this was part of the reason I got myself into financial trouble).

Visit my blog at http://cr15py.blogs.iva.co.uk