Hi, A question about how HMRC debts are treated in IVA

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grinder

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Post by grinder » Tue Nov 18, 2014 12:44 am
Hi,

A question about how HMRC debts are treated in IVA.

In my situation when I went into the IVA I had an estimated self assessment debt of about 33k.

When the revenue finalise their claim, what happens if the estimate was wrong. What is the margin of error that would not impact on viability of the IVA. I ask becuase, subject to what my accountant says the 33k estimate may be more like 39k against an overall debt of 105k being paid back at 0.54/pp

This has arisen because i issued a large bill in the tax year that my IVA started, but it was paid to me in two parts over the following two tax years. BI have to account for it within the tax year the IVA commenced and thus forms part of the tax assessment wrapped up int he IVA.

I am concerned that because the estimate is out it could cause the IVA to fail.
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Michael Peoples

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Post by Michael Peoples » Tue Nov 18, 2014 10:18 am
HMRC claims are almost always estimated as the final claim cannot be agreed until the year after the IVA has been approved. This has the effect of increasing or decreasing the dividend but that will usually also be estimated for the same reasons.
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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