www.iva.co.uk

Hi again

Been away a while but I need some more reassurance.

I had my creditors meeting in Jan and they accepted 26p in the pound by way of a lump sum (from a remortgage).

I was expecting my satisfaction certificate and my regulated network were asking for it as I am a self-employed mortgage broker regulated by the FSA.

In March I contacted my IP who told me the delay was due to awaiting clearance from HMRC for 2008-9 as I am self employed.This was the first time this condition had been mentioned up to this point. As soon as year ended I sorted my books and had a meeting with my accountant. He didn't know what the IP would need but fears I may have a significant tax liability as he requested deferrment on 2007-8 as the impact of the credit crunch hit my income very hard, and the cash flow, hence my financial situation.

I raised £20,000 on my property and took a bad deal to settle my IVA as that was all that was available. I have no more accessible equity.

If my tax bill is more than I have saved for it (I was saving the amount suggested by my accountant) what will happen to my IVA?

Further financial difficulties could result in removal of my status within the regulated network and the total loss of all income.

I have emailed and left messages for my supervisor over tha last few days but they haven't replied-yet!

Any help. advice or reassurance would be appreciated.

That sick feeling has returned. I thought everything had been sorted.

Hi
It may impact on the dividend that your creditors receive if the tax liability is larger than expected.
How much did your IP allow for in the initial calculations and how much is your actual liability ?
Regards

I have budgeted at about £3,000 but it may be double that. Looking over the paperwork there was no account taken of any tax liability. I didn't even see the relevance until well after the IVA was agreed, I raised the remortgage and paid money over to my IP. I won't name them as it's possible there was good reason for this. (PS don't know haw a new username was generated before but redr0bb0 and robert25 are 1 and the same!)

It is a well known fact that the tax due to HMRC for the fiscal year in which you propose an IVA will form a claim in the IVA. So this cannot be formulated until you submit a tax return for that year, which could not have been done until 5 April 2009 - and then you will have to wait for HMRC to calculate any liability.

I hope your IP provided for this within the creditor figures?

Nobody mentioned this until I queried my situation in March. There is no mention of any tax liability in my creditors listing. I think I was asked early in the process if any tax payment was due, and it wasn't.

The only mention of tax in the proposal comes under a paragraph entitled "Trading":

"Where I am currently self-employed..........................I believe that any such business after taxation will be able to generate sufficient income after taxation to fund my arrangement. I understand that in these circumstances, it is soleley my responsibility to:
*Manage my business
*Meet any obligation arising in rerspect of my tax matters
*......"etc

I had no tax to pay 2007-8 and didn't realise that 2008-9 would be taken into account.Can anyone say how will this affect me? I will be able to pay the tax bill, but not until Jan when payment becomes due.

Will that mean my IVA can't be satisfied until then and does that also mean that my debts won't be cleared until then? How will my creditors react to that? Will my IP be holding funds for nearly 1 year?

I thought I'd begun rebuilding my life (in still difficult times) but it seems the demolition of the rotten parts hasn't gone the way I was led to believe.

What was seemingly straight forward now seems more worrying- again!