New Income tax changes to I/E of IVA

[Emily]

One for the Experts or anyone who might know?.....

As of 1st April 2008 people will pay upto £350 less/more tax a year depending your Income.

How would IP deal with the decrease??? This is unprecedented, it is certainly not covered in the Modifications.

If a pay cut due to tax increase of £50 occurs how would it be seen?

[MelanieGiles]

IVAs proposed under the new protocol allow for the IP to reduce monthly contributions by up to 15% at their own discretion. And for earlier proposals it is just down to good common sense at the end of the day.

[Adam Davies]

Hi
Under the new protocol compliant IVA tour IP would be able to reduce your payments by upto 15%.For an IVA outside of the protocol your IP would have to arrange a creditors meeting to seek agreement for a reduction in your IVA payments
Regards
Regards

[andypug]

when i asked my ip for a reducn of 15% under this clause due to a rise in rent of £25 per week, he told me he would have to extend my iva to cover this, why ?

[pm5]

In my IVA it states that a minimum of 25p in the £ must be met & anything below that would be mean the IVA a failure,so perhaps thats why your IP wants to extend your IVA.
In order for me to achieve 25p in £ my IVA is for 6 years instead of 5.

[MelanieGiles]

The 15% discretionary reduction does require the lost money to be made up at the end of the arrangement - but does not extend the arrangement over a further 12 months.

[pm5]

Sorry Mel I meant my IVA was agreed at proposal to run for 6 years to achieve 25p in £.