We are currently looking at taking on an IVA as my husband and I have around £80k of unsecured debt. My main question is concerning our main creditor which is HMRC of around £30k. I am in a partnership and the debt is my share of the profits. My question is if I include this amount in my IVA can HMRC ask my business partner to pay this amount? Also even though per my business accounts I have an amount in my capital account I am a salaried partner and the equity shown relates to my business partners share.
Another question too, sorry, my year end is 30 April so for 2013/14 tax year my year end is 30/4/13 and for 2014/15 my year end is 30/4/14. will I be able to include both these amounts in any IVA I enter into? I have asked my accountant but they do not know.
Your partner will not be liable for your personal tax liability but all the debts of the partnership will need to be listed. This would include any trade creditors, PAYE and VAT although these can be paid on an ongoing basis from the partnership.
There is also the possibility that the IVA would invalidate the partnership so you would need to check the original agreement and keep your partner fully aware. It is not that straightforward so make sure and get proper advice before you proceed.
Your tax liability listed in the IVA will include all arrears owing plus any payments on account due and the full liability for the tax year 2014/15. This will allow you to restart and plan ahead.
Finally, if you have any outstanding returns to HMRC you must get them submitted as otherwise they will reject. It does not matter if you cannot pay anything due but it is imperative to get the returns in. Best of luck with your proposal.
