I am a my wits end again ,I have been in an iva since December 2013 and all going well so far.my big problem is that a provision was made for HMRC in the iva,at the time I owed them nothing, now have been hit with a tax bill for just over £5000 and as I understand no debt after the set up date can be included at a later date. I have spoken to my debt company and they said I will have to deal with it on my own. This debt must be cleared by Jan 2017 as I spoke to HMRC today.i don't know what to do as I clearly cannot clear this before January.HMRC guy said I will be contacted by debt collectors or go bankrupt !!! That will trash my iva as well.
Tax due in the assessment year the IVA commences is included in the arrangement, however tax due from the years after is a new debt and cannot be included. You are expected to account for this by putting aside the required amount from your income.
We do have an expert with much more knowledge of HMRC dealings, hopefully he will see this and comment further.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
All tax due up to and including 2013/14 would have been included within your IVA and an allowance made for you to save going forward. You must have had a tax bill last January for the year 2014/15 and this bill will be for 2015/16.
If you previously owed HMRC nothing and you now have incurred substantial liabilities your income must have increased and this will have been reflected in the annual review. If the IP took too much of an uplift or you did not set aside any money there is a serious issue.
You need to speak with your IP and get to the bottom of this as non payment of any post IVA liability is a serious breach and HMRC will seek your bankruptcy. The only other thing is the debt is based on assessment and not filed returns so perhaps is not due at all but I am only guessing.
Also if you haven't put tax returns in HMRC will have to estimate the liability until they receive your returns.
You should have received a new post IVA tax code once the IVA was established. Their claim for the period to April 2014 would have been included as a debt in the IVA but the return for the period April 2014 to April 2015 and April 2015 to April 2016 is your new responsibility to sort and pay.
You had to put a paper return in by 31 October 2015 and 2016 or online by 31.01.16 and 2017.
Have you been submitting your tax returns?
Last edited by Lisa Thomas on Tue Oct 25, 2016 9:52 am, edited 1 time in total.
