My husband has started an IVA and is due a tax rebate, being self employed, as this is not classed as a windfall will he get it ot will it have to go to his creditors.
Hi I think if there's nothing direct in your paperwork then your ip would be the best one to ask but I do suspect some will have to be paid across depending on the ammount
I believe it will depend what period there find is for ...before or after the IVA started. Your own IP will be able to give you specific advice on this but please let us know how you get on.
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It depends on how his IVA was initially structured. Seek specific advice from your IP - as this issue should have clearly been explained to you at when the propsals were being presented. Is your husband subject to the CIS scheme?
The rebate is for the last finacial year, the IVA did not start until 12th April 2012.
In the paperwork we received there was a paragraph on windfall payments which reads:-
In the event that I shall come into possession, or be entitled to do so, of any monies, goods or property of realisable value by way of windfall or inheritance or any other means (other than receipts of an earned income nature)etc.
As I read it tax rebates would come under earned income nature. The amount of rebate is £1600.00 which should be paid to our accountant at which point he would take out his money, which is £415.00 and send us a cheque for the remainder. At the moment it is at the tax office and nobody seems to be able to answer our questions.
Then the tax rebate should strictly speaking be an asset of the IVA, as it was due to your husband prior to the IVA being accepted. Was this discussed with your IP at the time the proposals were being presented? And the accountant's bill should be a creditor in the IVA.
Best to chat this through with your IP as they do have detailed knowledge of your case.
If the accountant did the work post IVA he is entitled to his money and would not be bound by the IVA. HMRC will usually offer the money to your IP and he/she can then pay the accountant and the rest could go into the pot. As Melanie says your own IP will no doubt have discussed all this with you prior to the IVA so get some clarification.
