Ive just received a £2000 tax bill from the inland revenue calculating that I underpaid in the tax year 2012/2013. This obviously means that when Ive submitted my income & expenditure my net income has been incorrect. Can anything be done? We have a f&f meeting this week and was hoping for an end to all this.
This debt is pre IVA and should be captured within it. HMRC will have received notification of the IVA if you are self empoloyed and this should form part of their final claim.
Inform HMRC about the IVA in case the department who sent the bill is unaware and send the correspondence to your IP.
Michael, thanks for this but I am still confused...how would the time period 2012/2013 be pre IVA when we signed up in 2009? I am not self employed either. It seems like they've calculated something wrong, in which case wont I owe them?
Sorry I did not realise your IVA was so old so that is different. However something must have gone wrong between your employers and HMRC if you are not self employed. The coding must have been wrong for you to have underpaid so perhaps it related to a company car or the like.
I accept what you say in that your IVA payments were set too high for that year as your income was overstated. This meant you overpaid the IVA and underpaid HMRC as a result. Normally a variation would be appropriate to allow you to clear this debt but with a F&F next week this is clearly not an option.
Speak to your IP and get them to go back to creditors at the meeting and reduce the F&F offer by £2k. This would clear HMRC and given the circumstances it would only be fair.
No worries Michael... Ive had bonuses and I do have a company car etc so this is probably whats happened. Oh dear CF are not going to be very pleased are they when I explain and re offer £100 for the f&f. I only have 6 months of payments left and offered £2100 to clear this. Do you think they will accept?
Not sure but it does seem fair especdially if you have paid extra into the arrangement during the time. Anyway creditors are giving them 23% for supervision fees so why not allow you something back to clear a legitimate debt?
I had a tax issue once where I owed £400. I rang them and explained hardship due to IVA and they offered me a payment plan to pay off the owed tax monthly. Have to say they were very helpful and understanding so perhaps worth speaking to HMRC to see what options you have. I know mine was for less but worth a phone call to ask.
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
I have contacted CF and they said they've never experienced anything like this but will look into it tomorrow. Next step is to call HMRC to see how much they plan to claw back each month.
