I have been in an IVA for a year and in this time claimed tax credits for child care. After my annual review my tax credits went up as the cost of my child care went up, hourly rates increased. Because my income was incorrect for the previous year they'd backdated my payments and gave my wife and me £300. Stupidly, I never thought of the IVA and gave the money to my childminder as, that's what tax credits are for, childcare.
My question is, could my IVA fail due to me giving this money to my childminder and not my creditors? I have has an email saying I owe money due to additional money being earned through bonus or tax rebates, I've tried contacting creditfix but haven't been able to get through to anyone yet but, this is the only thing I could think of.
I would assume that this would fall under the windfall clause and, being under £500, is yours to do with as you please.
It boils down to semantics, but, in my mind a tax rebate results in the return of earned income, which is captured by the IVA. A Tax Credit payment, is not earned income -- it is an unexpected windfall.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk