www.iva.co.uk

I was wondering if anyone knew information regarding tax credits while in an IVA. I am soon going to have to renew tax credits award. I am expecting it to go down by around £120 a month. Obviously this is quite a dip in income. Will this being taken into account with my IVA and will by payments be reduced before of this loss in income.

Haven't you just entered into your IVA Amy? Was the potential reduction in tax credits not considered by your IP at the time your proposal was finalised? Undoubtedly this will affect your ability to fund your IVA payments, and a shame this was not taken into account at an earlier stage when payments could have been staggered downwards to suit your changed circumstances.

How much are you currently paying into your IVA?

me and my partner are paying £270 a month. his share is £106 and mine covers the rest. it was never mentioned whie setting up IVA. I was not completely expecting it until i found out my earnings for last year were higher than i had anticipated. I am so worried because i do not want to mess up my IVA , it has only just started and i do not want anything to make it fail. thank you for quick reply.

I feel very strongly on this, child tax credits is their to help funding of your children, and i think its wrong that this as to be taken in to account as income on your IVA, which means that children become worse of becuase of an iva that is not their doing and i really feel strongly on this, that it should not be taken in to account

Amy

If your earnings for last year had been properly examined by your IP, the potential reduction in tax credits would have been spotted. Are you self-employed or employed? You should speak to your IP directly on this point to see what can be done if the credits are actually reduced.

Sorry James, I have to disagree with you on this point. IVA allowances where children are involved are relatively reasonable, and tax credits are actually paid to supplement low incomes rather than to provide specific benefits for children. It is however a little folly to assume that the same level of tax credit will be payable throughout an IVA, and certainly the previous year's earnings must always be analysed to spot if this will result in a reduction or increase in credits awarded.

I'm with Melanie on this one.

If the tax credits weren't included I bet there's a few parents out there who would use the extra money for themselves and the children would still be no better off.

skippy if a few parents out there would do what you imply,that means that a lot of parents out there would,nt do what you imply, based on the facts that there are a lot of parents out there,i disagree with you, as i would support the weight of most of the parents out there compared with the few.

Skippy, I'm with you on this one. I've lived through various incarnations of tax credits when my daughter was growing up. It has always been treated as our income, but she benefited from it as well as it was part of our income and I see no reason why it shouldn't be included.

The child benefit we had was not put away, but used as part of our income - but then again, our daughter benefited from it.