I wonder if anyone has had any dealings with HMRC and Vas.
Our IVA was given the go ahead on 6th December 2012 and i have just filed my tax return for 2012/2013 which i have been informed is included within the IVA, However my return is telling me i have to make payments on account in jan 2014 and also july 2014.
One person at vas is telling me no i do not need to pay this whilst another is telling me yes i do need to pay it and it will need to be paid when i file my 2013/14 tax return in April under my new UTR number.
Have called my IVA firm ( the wonderful Melanie Giles) and have been told no i do not make a payment at all until my 2013/14 is due for payment which i think at the latest is 31st jan 2015.
If anyone could shed any light on this it would be much appreciated as its causing me alot of worry, the last thing i want is to land myself in more hot water!
That's right, you shouldn't have to make a payment until your 2013/14 payment is due. The 2012/13 tax should've been included as a liability in your Arrangement.
Hi Cariadqueen - rest assured the advice Melanie has given you is correct. If you have any more concerns do give us a call.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
We are in similar situation whereby husband is self employed and IVA was approved in January 2013. He received letter from HMRC confirming 2012/2013 liability was included in IVA and this was confirmed by IP. Online account still shows as 2012/2013 balancing payment required but HMRC have confirmed in writing that no payment in respect of this tax year is required and only payments for 2013/2014 are due. Things will sort themselves out eventually when HMRC get around to updating their systems!
Thanks esgt, It's so confusing! Hopefully HMRC will sort out their systems pretty pronto as the payment on account thing is freaking me out and im having nightmares about getting penalties and all sorts! x
If you have any more difficulties with HMRC make sure you let me know about them firsthand. The system is really not difficult at all - but I think that HMRC are underesourced, and don't necessarily have the correct expertise to hand to be able to deal with issues such as insolvency queries.
If your tax liability is above a certain limit HMRC calculate payments on account to be made for the following year (50% of your current tax liability in January and 50% in July so that they receive the tax in advance) don't worry though as you can elect to reduce your payments on account to £nil and all tax due for the 2013/14 tax year will become due for payment on 31st Jan 2015!
That is good general advice Lisa, but not really relevant for this poster as her query relates to the tax year which forms a claim in the IVA - so no tax is payable as the tax thereon forms a claim for the entire year within the IVA. It is just the rather strange way that HMRC work with personal insolvencies.
Thanks Lisa and Melanie, If i do have any more questions or issues with HMRC then i will give you a call Mel.
Don't get me wrong the people i have spoken too at VAS are lovely but trying to get a definitive answer with regards to the payment on account that is showing as due jan 14/july 14 has been tiring!
I guess i will just have to wait now for my new UTR number to arrive and file my tax return next April for 2013/14.
Thanks again everyone this forum is invaluable and ofcourse the support from my IP and all of her team has been amazing and i can't believe we are already approaching our first year, lets hope the next 4 are just as quick!
Im sorry to pull this thread back up again but i just need some clarification.
I have just had call to say that HMRC have finalised their stake in the IVA ( apparently the figures do not add up so this needs to be queried) but also the payment on account for 2013/2014 DOES need to be paid by january 31st.
I really am so confused and pulling my hair out at this stage because im being told different things.
All i want to know is whether i need to make the payment on account that is showing as owed on my self assessment by 31st jan 2014.
Im getting all these worrying feelings coming back to me again and i want to try and quash them quickly if i can
Hi, the payment that needs to be made depends upon what tax year it relates to. My husband's IVA was approved on 4th January 2013 so is in 2012/2013 tax year so there is no further liability for that tax year - on his Self Assessment account online with HMRC there is still a balancing payment for 2012/2013 due but this does not need to be paid - HMRC have confirmed this in writing. However, any money relating to the 2013/2014 tax year does need to be paid and you need to check your account to confirm what tax year the payment relates to instead of the date it is due by.
Hi Esgt, On my self assessment as it stands i have a payment on account that needs to be paid by 31st jan for tax year ending april 2014 and there is also a balancing payment for tax year april 2013 which i know is included.
It looks like then i will have to pay the payment on account as this would be towards my 2013/14 liability. The thing that concerns me is i have been told not to make any payments under my old tax UTR number a new one would be sent but not until march time which by then it would be to late and i would incur all sorts of fines!
Spoken to Vas again this morning who have said everything that is showing as needing to be paid on self assessment at the moment including the payment on account will be swept up into the IVA and im basically not to look on there as its going to be void. I was told i have to wait now for my new UTR number and file my 2013/14 tax return from April next year.
