Can I receive a cash gift whilst I am in an IVA?

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vic974

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Post by vic974 » Tue Dec 03, 2019 3:32 pm
Hi there,
My IVA is up for it's first annual review in January 2020.
I received a £4000 gift from my mum this year for much needed work on our house, furniture, new clothes & a few bills etc... I thought I was aloud to receive a gift of money but I can't find the T's & C's of the IVA. The money has been spent now and will show on my bank statements, which I have to send as part of my annual review - Am I at risk of loosing my IVA?
I have also started a new job with a higher salary, I have been waiting to receive a permanent contract before I informed the IVA provider of the change in income. Is that the correct procedure? (I understand I may have to pay more in to my IVA)

kallis3

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Post by kallis3 » Tue Dec 03, 2019 4:10 pm
£4k is a lot, but if it is a gift to pay for your repairs and you can prove that with invoices I think you should be ok. I would inform them now although a lot of companies won't need to see any increase until your annual review and you do your I&E.
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IVA2010a

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Post by IVA2010a » Tue Dec 03, 2019 7:20 pm
I wouldn't tell them its not tax deductible theyll never find out about it. Its non of their business if its a gift

Foggy

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Post by Foggy » Tue Dec 03, 2019 8:32 pm
Tue Dec 03, 2019 7:20 pmIVA2010a wrote:
I wouldn't tell them its not tax deductible theyll never find out about it. Its non of their business if its a gift
This would work if it wasn't put through the debtors bank account --- if it appears on any statements the IP requests they might well question it. Any reasonable IP would probably accept the explanation that it was for repairs, but to steal from George Orwell, "Some IP's are more reasonable than others".

Incidentally not being tax deductible merely makes it a windfall.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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vic974

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Post by vic974 » Tue Dec 03, 2019 9:02 pm
Hi, thank you for your reply’s. I think I’ll not say anything unless they ask.
If they ask, Do you think it would make any difference if my mum had lent me the money instead of gifted it?

luluj

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Post by luluj » Tue Dec 03, 2019 11:26 pm
It should remain a gift rather than a loan .... as you are not allowed to take new forms of credit whilst in an iva.

What I would do is wait until asked about but be ready to give them a letter from mum to explain it was a gift and for what purpose ...

If mum helps in the future maybe better if mum pays the contractors / retailers direct rather than it hitting your account.
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Lisa Thomas

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Post by Lisa Thomas » Wed Dec 04, 2019 10:26 am
Tue Dec 03, 2019 7:20 pmIVA2010a wrote:
I wouldn't tell them its not tax deductible theyll never find out about it. Its non of their business if its a gift
Take care as you say it was paid into your Bank account so it may well be uncovered and it IS their business to determine where the funds came from.

If your Mum has large sums to be able to gift to you perhaps she might be willing and able to help you put forward a full and final offer to end the IVA early. Something to think about maybe?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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