www.iva.co.uk

Hello all

Grant Thornton have recently taken over our IVA which is in its 4th year from Accuma. When we received their letter advising us of this, it states that nothing will change and we just keep paying the same amount with the same conditions etc etc.

With Accuma, we were never required to send in my husbands payslips as the 50% overtime/bonus rule never applied to him so its just been mine. Also he has been self employed since last August and I worked out his average drawings for the year and overestimated this a bit which was fine for Accuma who were fully aware of this. We also missed a couple of payments last year, when someone paid my husband's invoice late and we arranged for these arrears to be added on the end of the arrangement.

Now Grant Thornton have sent us our annual report and it states that they will be sending us a breach notice for missed payments and they require my husbands payslips. I have rang them and explained the situation. We were told to ignore the Breach (bit hard to do that) and that they require my husband's tax return (which is no reflection on what he brings home!!!)

Obviously I am not happy that everything agreed with Accuma has not registered!!!

The breach itself is of no real concern and can be ignored. Most creditors do not read annual reports too thoroughly[if at all] and anything mentioned on them will not be put on your credit file.

Send in the tax return and that should be the end of it unless the tax return conflicts with the I&E. This may need a bit of explanation but in general profits and not drawings are used as the basis for your husband's income.

Thanks for that Michael.

Would it be the profit minus the tax to be paid. I know that ont he I&E I put down my net earnings that I take home and I'm sure that this will be the same.

Also apart from what he takes as drawings, everything is put into the next job until he gets paid which can be anything up to two months so that profit is not what he has earned as he is always two months behind??

Yes - your husband's drawings from his business should be showm net of taxes.

Your IP will average out the profits and make an allowance for any tax and NI. Make sure your husband continues to submit his returns and pay his HMRC liabilities on time as failure to do so would result in termination of the arrangement even if the IVA payments were up to date.