Your IP is likely to want to see the audited accounts. As you are aware the dividend will form part of your income in assessing payments into the IVA, but the IP has to be satisfied that this is a fair dividend and that the company coffers aren't holding back sums to pay to you post IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I doubt it. Being OTT --- imagine that you declare a dividend of £1,000, yet the Company made a profit of £50,000 and you are the sole Director. The IP is going to be interested in that £49,000 "unaccounted for".
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy is right. The company could then have £245k of retained profits after the five years which could then be paid out as a dividend. Unlikely I know but that is why the IP needs the accounts.
Let's say I had £10000 of dividend more this year than last year, what proportion of that would I have to pay into my iva if everything else stayed the same?
If my accountant is indeed able to minimise my net gains on the paper and my ip is going over my company's accounts wouldn't it be too suspicious? The year before the last my company made 38k and i had no divident left as I had nearly 40k expenses but last year company had 52k and there is no way I can pull more than 40k expenses so it makes 12k in dividends. I offered my iva a final settlement of 5k as my sister is willing to give me this money but if they add 12k of dividend on top of that and you say 50% that would make £500 a month more in payments therefore my settlement would be £500×30months left on iva more to pay as settlement?
Your IVA would have been based on salary plus dividends [if applicable]. If the company now has a profit of £12k versus a loss the previous year of £2k then you could draw a dividend or pay an increased salary. The dividend payment would be dealt with according to the proposal and any modifications proposed by creditors and it may be that 50% of the dividend is payable to the IVA.
You could use the rest to offer a full and final settlement but you need to find out from your own IP how the company and the dividends are treated.
Absolutely. You would need to do a new I&E showing one increase versus the reduction and see how the surplus has changed. Any increases in living expenses would also be factored in and your payments should only then increase by 50% of any additional surplus income.
These type of things are usually addressed within the proposal otherwise it would be unfair to expect you to hand over half your dividends but also make up the shortfall from the tax credit reduction.
No -- he would still want to verify your income. And such a move will wave red flags, which will have the effect of making the IP even more dilligent.
It does sound as though you have not been entirely forthcoming and are worried about being caught out, which is not the way to approach an IVA, as the further in you get the more disastrous being rumbled will become.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
How would my ip verify that income if I dissolve the company?
The other option for me is to be honest and pay out somehow but I was wondering what happens with my final ofer of 5k if I declare 15k dividend and my predictions are about the same dividend for next year? Will they ask me to pay half of that dividend into iva and then 5k f&f?
