Moretolife has been in her IVA for at least two years. We are not talking about a pre-insolvency debt here, but a post IVA tax refund. I would not treat that as a windfall, as this could place a strain on the ongoing businesses finances.
I am guessing it could be seen as a windfall as it is extra money that is now available.. and a portion of this would go to creditors. But only guessing [:)]
I would like to make it absolutely clear to everyone that I am in no way dishonest nor a liar....
I have been self employed for 20 years and always do my tax..I had an accountant for a decade before self assessment became accessable and for last 6 years I have kept my accounts scrupulously. I have records...receipts and all documents for verification....and when we entered the IVA presented a forward projection of earnings that was completely verifiable....and combined with my OH income we pay back 680.00 every month to out IVA
we entered into our IVA almost 3 years ago..had a face to face.with IP ....showed my accounts etc...and each review I send off all that is needed or asked for by IP including tax returns and accounts ....I save my tax each month and pay every 6 months...it just so happens that my income dropped and in fact will continue to drop and therefor the tax I had "paid on account" isnt valid....and is actually unclaimed /unused income as far as I am concerned and will show up in next review....as income...and it wont be hidden from anyones view.
I had the grand sum of 683.00 as a rebate ...or will when I claim it back and I have a 500.00 windfall clause so can actually keep 500.00 and hand over 183.00 if asked for....and believe me ...183.00 isnt worth being devious about in the grand scheme of things...but when I have to put away and save 400.00 to 500.00 each month for my tax plus the 680.00 for IVA ...then it would be a bonus to know I can keep it.
We are with McCambridge Duffy and Michael Peoples regularly posts on here...if I was a liar or a swindler it is unlikely I would post the question on here as he knows who I am...plus I have been to two F.Friends meetings and met both Melanie and Andy Davie and had a long chat with Melanie re both my situation and OHs possible redundancy...and would hope she and Andy would vouch that I was a genuinely honest person.
Re my original question...I will contact my IP direct and ask for direction
Last edited by moretolife on Sun May 03, 2009 11:48 pm, edited 1 time in total.
IVA completed 11th Dec 2009 due to a Full and Final with the fantastic help of Michael Peoples and
Mc Cambridge Duffy
All David's reasoning seems based on the wrong assumption that this was a pre-IVA overpayment, which it clearly isn't. How is a tax rebate treated for employed persons? I suppose the argument would be that, if taxed at the correct rate, more monthly net income would have been available to creditors therefore the rebate is a windfall. If so, do only amounts over £500 go to creditors or the whole lot? (or is it far too late to be considering such matters in any case when we should be shedding tears for Melanie as Cardiff miss out on the playoffs by a solitary goal!!!)
So far as I am concerned it is not a windfall, and I am fairly sure my ex-colleagues at McCambridge Duffy will agree with that reasoning.
Worse than seeing Cardiff City lose out in the football, was being sat in the Millenium Stadium this afternoon to see my beloved Cardiff Blues lose out on a Heineken cup final place by way of a penalty shoot out. I have never ever seen that happen in Rugby Union before!
Oh, dear, Melanie. What a lousy Sunday for Cardiff! The whole city must be in mourning. I missed the news about the rugby and had no idea that penalty shoot-outs featured in rugby at all. Perhaps they will be introduced into creditors voting procedures in the not-too-distant future!!
I apologise to moretolife as never intended to assert that you were anything other than truthfull and honorable.
If I have missed the point of the thread and it is a post IVA refund then quite rightly as Melanie and others have said this is not a windfall and should not be treated as such as a windfall.
Thereafter the arguments articulated were in respect of hypothetical situations.
I accept admonishment.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Now Now Julie!! We Celts must stick together, and therefore I must insist that you support the Bluebirds as your second team!!!
We are really looking forward (not!) to sharing a ground with them next season. With some trepidation did I part with my season ticket money this time, and just hope that our marriage with our footballing cousins will be as amicable as it is with you lot down in Swansea. Somehow, I think I am going to be disappointed!
I would also like to add that I did not for one minute think you had been anything other than totally honest mtl. The question progressed to what if somebody had dilebreately engineered an over payment rather than suggesting that you had in fact doen this. I am truly sorry if this has upset but please rest assured that any comments were not directed in any way that you are dishonest.
Sincere apologies.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Sorry Moretolife but I missed most of this thread. Contact me directly if there is a problem with the IP but there should not be. You have an accountant who has prepared your books who will need paid and possibly insurances to be renewed. Theses expenses were allowed for in the original projections and this rebate can be used for these purposes.
The fact that HMRC offered the rebate directly to you and did not offer it to us as a windfall says to me that they do not believe it to be a windfall. Given that they have get copies of all self employed IVA proposals means they know you are in an IVA and who your supervisor is.
Thanks Michael...altho at this stage in my self employment I dont now have an accountant after 10 years of paying over 380.00 each year...she then showed me how to do it online myself..so for last 6 years I have done so and was doing it like this when we entered into our IVA...
Prior to acceptance of IVA our IP had a full copy of accounts etc and each review has been happy with what I send so assume this year in September wont be any different...the tax rebate will show up as income.....
IVA completed 11th Dec 2009 due to a Full and Final with the fantastic help of Michael Peoples and
Mc Cambridge Duffy
Bear in mind that to have received the rebate based on excess payments on account means that your profits had to have declined. This would have impacted on the family budget if you managed to maintain the IVA payments at the normal level. This rebate could also have made up the shortfall in your income or replenished your contingency fund.
Been a while since I needed any additional advice from this very useful website, everything has been running extremely smoothly over the past 11 months of my IVA, but today I also received a TAX rebate for £315 based on the 2003 - 2004 Tax Year? over 5 years ago?? Rather odd its taken this long.. but none the less.. where would I stand in relation to this in an IVA seeing as this was many many years ago?
