I have a potential tax problem in respect of a tax scheme I entered into a few years ago. HMRC have indicated that they are going to resist the scheme. However, to date the matter is at appeal and the outcome is uncertain.
As a protection, I am considering entering into a Full and Final IVA .This will involve clearing some unsecured debts(£20,000) spread over 4 creditors in a single payment of £12,000.My ongoing income is non meagre being a pension of £195 per week.
If I enter into the Full and Final IVA and settle it before the HMRC debt becomes due,will that prevent the HMRC from pursuing me
michael559 wrote:I have a potential tax problem in respect of a tax scheme I entered into a few years ago. HMRC have indicated that they are going to resist the scheme. However, to date the matter is at appeal and the outcome is uncertain.
As a protection, I am considering entering into a Full and Final IVA .This will involve clearing some unsecured debts(£20,000) spread over 4 creditors in a single payment of £12,000.My ongoing income is non meagre being a pension of £195 per week.
If I enter into the Full and Final IVA and settle it before the HMRC debt becomes due,will that prevent the HMRC from pursuing me
No, I wouldn't think so -- the HMRC debt will arise after the IVA and so will probably be treated as a new debt -- that alternative would bre that it is included in the IVA as a potential debt ( I don't know if this is a possibility, due to the nature of the debt) and HMRC will possibly vote to reject. A lot will depend on other circumstances, for instance, do you own a property with equity available ? You need to have a chat with a few IP's to see how the ground lies and to compare advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you for your Forum question. I think it's highly unlikely the debt could be covered by a completed F&F IVA. Possibly if its a very small debt but I guess this is unlikely. Better I suspect to try and get to the bottom of the HMRC potential debt first.
I would wait for the outcome of HMRC potential claim.
Also if you have a lump sum and only a few creditors you might want to try and do a deal direct and save the costs and admin of an IVA but it will depend how approachable your creditors are and how proactive you are as you will have to do all the legwork yourself.
