Just got an IVA via Knightsbridge. Bank has taken my tax savings. Now I'll have to go bankrupt

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philwill

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Post by philwill » Wed Oct 22, 2014 1:09 pm
So Ive just got an IVA..via Knightsbridge. My bank has taken my tax savings from my account. I will now have to go bankrupt.... well done guys
p williams
 
 

plasticdaft

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Post by plasticdaft » Wed Oct 22, 2014 1:31 pm
Were the tax savings declared to your iva company? Has the iva been approved? Were you not advised to move your money into a bank that wasnt included in your iva?

Paul
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philwill

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Post by philwill » Wed Oct 22, 2014 2:26 pm
I did say that the savings where for tax early on in the discussions.. being freelance it was pretty obvious really. I was not strongly advised to to move any money no.
p williams
 
 

Adam Davies

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Post by Adam Davies » Wed Oct 22, 2014 2:32 pm
Hi

Your tax liability will be included in your IVA. Any tax for this current years trading will be included in any IVA payment for the first year

Speak to your IP for full details

Regards
Andam Davies
 
 

philwill

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Post by philwill » Wed Oct 22, 2014 3:43 pm
The tax was for 2013 and is nearly due
p williams
 
 

Michael Peoples

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Post by Michael Peoples » Wed Oct 22, 2014 7:42 pm
The liability for 2103/14 and 2014/15 will be included within your IVA and the tax savings you had should have formed 'cash in hand' at the time of the meeting. This should have been explained to you at the time.

However if the bank has grabbed the savings post IVA approval the funds should be paid back to the IVA as the bank cannot treat themselves better than anyone else. Your IP should easily sort this out so give them a call.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

philwill

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Post by philwill » Thu Oct 23, 2014 11:01 am
thanks for the advice guys.. these terms seem a bit alien to me so, obviously where not discussed with me. I will chase it up
p williams
 
 

Michael Peoples

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Post by Michael Peoples » Thu Oct 23, 2014 11:21 am
If the IVA has not been approved yet there may be little that can be done regarding the savings but I assume the IVA has already gone through.

If you are self employed your payments will be much larger until April and this should also have been explained to you. HMRC will always be a creditor for at least the current year but the IVA will allow you to restart and move on.

Has the IVA actually been approved yet?
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

philwill

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Post by philwill » Thu Oct 23, 2014 1:34 pm
no absolutely none of that was explained to me.. and yes the IVA had been approved.. I was then told that Knightsbridge where going to try and cancel it to get the money back?
p williams
 
 

Michael Peoples

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Post by Michael Peoples » Thu Oct 23, 2014 2:11 pm
I don't see how cancelling the IVA would get the money back. If the money was seized post IVA approval it should be returned anyway and would be paid into the IVA 'pot'.

If you enter an IVA and you are self employed the tax liability for the current year forms a debt within the IVA and you have no liability for 2014/15. This means that the money you should be putting aside for future HMRC liabilities is freed up and the IP takes this off you until April. After April you get a new UTR and it is like your first day in self employment. Your payments then drop to your surplus income as the responsibility for future HMRC bills reverts to you.

If for example your average tax bill is £3,000 [or £250 per month] and your surplus income is £200 your IVA payments would be £450 until April dropping to £200 for the remainder of the IVA.

Were your payments structured in such a fashion?
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

philwill

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Post by philwill » Thu Oct 23, 2014 2:45 pm
Nothing like this appears to be put into p[lace...its not even been discussed.. It really looks like they have completely messed me up.. I am in a far far worse situation than I was.
p williams
 
 

Michael Peoples

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Post by Michael Peoples » Thu Oct 23, 2014 3:02 pm
You need to speak with the IP and find out what is happening. It is possible that you are a sub contractor in construction subject to CIS deductions which would mean you do not have a tax bill at the end of the year but if this was the case then why would you have savings towards a non existent tax bill?

Did you have HMRC listed as a creditor on your proposaland what type of self employment do you do?
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

philwill

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Post by philwill » Mon Oct 27, 2014 11:42 am
The IVA has now beenretracted and I am left with 3 useless credit cards, no tax savings and 200 over drawn as I did have an overdraft... possibly the worst thing Ive ever done?... what a conn
p williams
 
 

philwill

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Post by philwill » Mon Oct 27, 2014 2:27 pm
make that 2000
p williams
 
 

Michael Peoples

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Post by Michael Peoples » Thu Oct 30, 2014 2:30 pm
If the IVA has been cancelled you can propose another one with the same IP or a new one. It costs nothing to get some advice.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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