tax rebate

[moretolife]

I am sure this has been asked and answered loads of times...but if I get a tax rebate is it mine to keep or what??

[kallis3]

Not sure, think you might have to ask your IP about that one!

[ivas4us]

I believe it is treated as a windfall

[neverending]

Hi
Yes it will be sen as a windfall, unless your income dropped below that stated in your IVA, then you may be able to argue that you should keep an amount equivelent to the shortfall and the rest paid over
Regards

[moretolife]

any other thoughts re this one??...It is actually an overpaid tax situation...being self employed I pay "on account" each half year based on previous years tax calcualtion...so as my income dropped I had actually paid too much "on account" if that makes sense

[kallis3]

It does look as though it will be a windfall.

You'll have to inform your IP about it and see what they say.

[Michael Peoples]

In my opinion any tax rebate relating to a period pre IVA is a windfall as this is the time that you ran the debt up. Had you not been taxed as heavily the debt would not have been so great. However, any post IVA tax rebate whether paid as a result of CIS overpayments or the profitability declining belong to the debtor. The rebate will be needed by the client to fund necessary expenses which will have not been met due to the decline in profits. Therefore the rebate can pay the accountant, insurance, repairs etc which are listed on the projected profit and loss.

Had you not overpaid on account no one would have come after you for more money therefore any overpayment post IVA goes back to you. Your own IP may have a different opinion so you will have to discuss it with them but certainly fight your corner and let us know how you get on.

[MelanieGiles]

I would not class a tax rebate as a windfall - it may be a necessary part of your cashflow and required for ongoing working capital requirements.

[moretolife]

thanks Michael and Melanie..I am in my 3rd year so it is def. post IVA ....I was hoping this would be the case as I really didnt think it would be windfall....I was about to post and ask for contact details as I am with you Michael....well not you ....personally but one of your IPS

couldnt actually find the IPs email contacts details and when I clicked on your website I couldnt see how to do it...but I think you have answered my question...so wont need to contact IP after all..

[MelanieGiles]

Give Michael a ring at his office. He will be more than happy to chat this through with you.

[David Mond]

Sorry Melanie I disagree as I think that this tax refund is treated as a windfall and should be paid into the IVA.

[moretolife]

oops....now I dont know if it is windfall or not...

[David Mond]

Sorry to confuse you - are you self employed?

[moretolife]

yes I am self employed ...and do my accounts online ..self assessment..pay it january...but also "pay on account " each July for the next tax year.......because I paid on account last July and then earned less when I did my accounts several weeks ago it then transpired that as my income had gone down...then I had paid too much on account...

we arent talking millions here...and if it is a windfall after the 500.00 clause I will only have to hand over 180.00...but would really like NOT to have to do that if I dont need to.Car exhaust is making ominous noises...

I was offered the choice by HM to leave money in account to offset against next tax payment but would prefer not to do that..

so..any further advice welcomed

[moretolife]

can Melanie.....David or Michael throw any further light on this???...thanks....