Tax Return as proof of income

[themuzza]

Hi All,

First post so hope to hear so useful advice!
I'm a Director in 2 Limited Companies, both small enterprises, equal shareholder with 2 others, no staff.
Sadly we have had to shrink from 25 staff to just us, and its hit my income badly. I am now in discussions about entering an IVA. My income has stabilised and I,m told I stand a good chance of acceptance.
However I need to produce my previous tax return. Problem is this shows I earnt a lot less in the previous tax year than I have over the last year. Im talking £8000 declared income 2009-2010 as opposed to estimated £30,000 for 2010-2011. Surely this will mean that the creditors won't accept my confirmed income of £8000 can therefore meet my IVA proposed payment?

[MelanieGiles]

Hi there and welcome to the forum

You will need to include trading projections within the IVA proposal which show how you have arrived at your current income figure. If there is a material difference in the figures, then you will need to explain the changes you have made in the last year to ensure that your projections are credible.