I have considered taking part in a medical study to boost my income. For most of the studies the payment is £500+ but must be declared as self-employed earnings to HMRC. I therefore believed it would be classed as earnings rather than a windfall for the purpose of my IVA. I have contacted my IP who says it is classed as a windfall and therefore any payment of £500+ must be paid in full to be distributed between my creditors. I find this strange as it has to be declared as earnings to HMRC?
As it is extra income then you will have to declare it to your IP. I imagine that the figure will be that left over once you have paid tax on it.
Hopefully an expert can help.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have queried it with my IP who has referred the issue to her manager who has confirmed that as it is a taxable income it is classed as earnings and I will have to pay 50% of the amount earned after tax, which I am happy with!
Any other feedback re this issue would still be appreciated!
That sounds good to me - your IP is obviously happy with that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
That seems fair Vignal....it's not to take nedicine is it? After that disaster a few years ago I would try to talk anyone out of doing trials like that.
Haha it's a pretty simple medical study for an already marketed fast acting insulin used by diabetics. Nothing too harmless! Well worth the top up to my wages I think!
