www.iva.co.uk

Hi
I am self employed and due to the nature of some the work I do I have to wait 2-3 years before I get paid, even though tax is paid on the date I submit my fee notes.
What is the position for me. For instance, if I receive a payment from work I completed in 2013 (so I have already paid tax ) in 2014, am I allowed to keep any of the money or does it all go in the IVA pot?

Are you already in an IVA?

The point of it is to pay back what you can afford so you wouldn't be able to keep all of your income otherwise what would you be offering creditors?

How is the tax paid on the date you submit your fee notes - from previous year's income presumably?

Hi Lisa, yes I am in an IVA and pay an agreed amount depending on income. This money is from work I have done in the past few years, tax is calculated on the date I submit my invoice, for instance, if I send an invoice in on 1st January 2013, tax is due for year 2014-2015, and as stated, I may not get the actual fees for the work until 2015-2016 etc. Very complicated

Your IP should be able to advise on the specifics and this should have been allowed for in the IVA contributions.

The contributions should be based on what you have available during the year so although the income might relate to earlier years you are still receiving that income now but ensuring you have sufficient to pay any additional tax on this years income.

Hope that makes sense!

Thanks very much for the advice