Started my IVA in January this year, I started a new job within same month & got emergency tax'd.
Getting to the point - I've just been told by HMRC that I'm due a rebate of £300, I wasn't 100% on what I needed to do with this so I've emailed my IP & they advised that all of the rebate is due in the IVA with no explanation. I was under the impression (and probably just assuming) it'd be a 50/50 cut.
Upon reading my terms of the IVA the only part I can see is in the Interpretation documents & this is where it's not all too clear where I stand - to quote the terms;
"excluded assets" are those assets that are excluded from an estate in bankruptcy and any other assets identified in the proposal as being excluded from the arrangement; "after acquired assets" means any asset, windfall or inheritance with a value of more than £500, other than excluded assets that you acquire or receive between the date the arrangement starts and the date it ends or it completed, if this asset could have been an asset of the arrangement had it belonged to or been vested in you at the start of the arrangement"
It's the last part that seems a bit of a grey area - would the rebate be classed as a "after acquired asset", and fall under the £500 stated, or does it become an excluded asset, even though I wouldn't have known it be an asset at the time I started the IVA? The interpretation of excluded assets is "are those assets that are excluded from an estate in bankruptcy and any other assets identified in the proposal as being excluded from the arrangement" but then under the "after acquired asset" it states "other than excluded assets that you acquire or receive between the date the arrangement starts and the date it ends or it completed, if this asset could have been an asset of the arrangement had it belonged to or been vested in you at the start of the arrangement"
Many firms do not claim rebates, but some do. The arguement they use is that, had HMRC been deducting tax correctly, the extra income would have increased your disposable income and, therefore, your IVA payments, so you would not have got it anyway.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If all of it is due then that's fair enough, I have no qualms with that, it's just the terms don't make it all that clear where a tax rebate stands; is it a after required asset, or excluded asset.
Even then, the after required asset interpretation has the other than excluded assets caveat, which muddles my understanding even further.
I'll give my IP a call to clarify
Last edited by MrMeC on Thu Aug 11, 2016 9:57 pm, edited 1 time in total.
