tax accountancey

[Phil]

Hello
I currently have 2 jobs,One main job and a dj job,The dj job is a taxed buisiness and i pay accountancey firm to do my tax for the year.
My question is does the accontancy firm need to know about my IVA and do I need to let my IP know about the accountancey firm.Obviousley I will be paying a tax bill at the end of the year plus I pay a monthly fee to the acountancey firm. I just want to make sure everything is right with everything in the IVA and Inland revenue and my accountancey firm.The income from the dj job is Included in the IVA along with my main job,However I have had to do an average as the dj work is Ireggular.
Thank you in advance to your replies.
Phil

[MelanieGiles]

Hi Phil

You should let your accountant know about the IVA, as there are differing rules for the timing of payments to HMRC depending upon when you enter into the arrangement.

If you enter into an IVA say in July 2007, then that is within fiscal year 2007/2008 and all of the tax deemed due for that year will form a claim within the IVA. This means that you will not need to pay any tax until Jan 2009 - representing the first payment on account for 2008/2009 year.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Phil]

Morning Melanie thnkyou for your promt reply.
I entered an IVA agreement 26 march this year. Just to get my head round this are you saying that the accountants can claim against it.
I am not to hot in this area hence why Iam in an IVA.I do apologies If i sound a bit dense but it is a bit confusing.

Phil

[MelanieGiles]

No - I am saying that the tax you owe for fiscal year 2006/2007 (as you entered into your IVA in March 2007) will form a claim in your IVA - presumably your IP has already explained all of this to you? So the tax that you are due to pay at the end of this year is not actually payable to HMRC, as I am sure that your IP will have included them as a creditor. If this has not been done correctly, you will need to discuss the implications of this with your IP.

Your accountant will only have a claim in your IVA if he is owed any money by you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Phil]

Thanks Melenie
I never Included them in the IVA as I did not think of them as a creditor as I thought I did not owe them any money,But thinking about It I will owe them money at the end of the year when my tax bill comes.I will speak to to both my IP and accountant
Phil