www.iva.co.uk

Can an iva company take your tax refund? Do hmrc pay the money directly to you, or to the iva company?

It may well depend on how much it is but I have no idea as to whether it is sent straight to your IP. Were HMRC aware of your IVA?

I imagine that they will send it to you and you then have to inform your IP and pay over at least a share, if not all of the money.

If the tax refunds represents, say, that you have been overpaying tax by £20 a month for the last 6 months, you are due a refund of £120. Now, if you had not been overpaying each month, your disposable income would have been £20 more and each IVA payment would have been £20 more. So, in fact, it is the creditors that have been short each month, not you, so the £120 is theirs.

I had 2 Tax refunds during my IVA, both were sent directly to me as a cheque and I then paid my IVA company once I had submitted them through my Bank for clearance. Both were under £500, but my IP wanted all of the funds.

I had a tax rebate during my Iva and because it was under £500 it was treated the same as a windfall ( check your agreement) I was allowed to keep it after questioning Creditfix original answer