www.iva.co.uk

i have a query regarding the self assesment payments, any one have any experience of self employed and being in an iva

Hi,

I think we have one or two self employed people on here who may be able to help.

If you're already in an IVA then speak to your IP - otherwise you need to contact a company who specialises in the self employed.

my IP has explaned it to me but it doesnt make sense, all hmrc debts for last & this year are included in the iva but i stil have to pay what they estimate my tax bill is going to be for this year over the next 12 months by instalments to my supervisor, it condradicts itself! If its in the iva why do i have to pay it ?

I think that only hmrc debts prior to the IVA can be included but I could be wrong about that.

Bumping this back up so that an expert can answer.

Hi lokop[aul - it may be to do woth your in account payments. Your tax bill from last year will be for the trading period the year before and this years bill is for last years trading so your next 12 months may be for the current tax you should be provisioning for. It will be your IP who can explain as they will know the ins and outs of your proposal. Melanie or one of the other IPs may be able to asnwer as they deal with self employed clients all the time. I am sure Melanie will be on later this evening to do her ususal late night responses.

Let us know how you get on and we'll see what any of the other IPs come up with.

Regards,

It is fairly simple - each month you should set aside a sum of money towards your next year's tax bill. Now that you are in an IVA you won't have a tax bill to pay for the current year, as all of the tax due will be deemed to be a claim in the IVA - so it is right that creditors should benefit from those tax savings by way of increased contributions.

but thats the problem, i cant forecast my earnings for next year so dont know what i should realy be paying,in any 2 years my earnings can vary by as much as 20k

The the IP acting for you needs to take a prudent view about what is reasonable to include. No-one can accurately predict their future earnings from self-employment - not even experienced insolvency practitioners! - but there will be some patterns and trends to follow I am sure.

Choose a practitioner who is familiar and used to dealing with the self-employed and preparing trading and cashflow forecasts as these will be essential for ongoing budgeting purposes.

I think lokopaul is already in an IVA Mel.