I have just been accepted on to an IVA (07/10) and received a sizeable rebate from HMRC on 04/10 from last tax year. Have tried to speak to my IP (struggling but will continue to try) about it as not sure if the timing changes how the rebate is perceived and what will happen with it. Any thoughts?
It depends on the amounts involved. If a modest amount you could argue that it was pre-IVA. If not so modest they could argue it is an asset and payable. Different IPs tend to have different views.
Payplan have this to say:
"If I am due a tax refund, will all of this have to go towards my IVA?
Money owed from last 4 years
Tax that has been overpaid in the past 4 tax years can be recovered from HMRC. If you are in an Individual Voluntary Arrangement and have overpaid on tax, any money HMRC owes you from the last 4 years will be classed as an asset of agreement. This means your creditors are legally entitled to these funds which will go towards paying back your debts.
Money owed from the current tax year
If we find you are paying too much tax in the current tax year, HMRC will send you the money or pay it into your wages or salary and you may keep it. However, previous years’ tax refunds will go to your creditors and towards paying off your debts."
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
I was the same as you this year mine went like this...
Because it was for the previous tax year i had to split it so take of your 10% then it was a 50/50 split half to the IVA and half to me.
i made a deal with my IP that any extra money i receive as in Over time , Rebates etc etc , That i would just split everything 50/50 % then on my yearly review after they calculate it all up i owe to creditors i will then take my 10% from the Gross.
Should give me a few Quid at the end of each year