I am currently in an IVA which has been running for approx 18 months. When I applied for the IVA I had company corporation tax debts (approx £5000) through my Limited Company where I am the sole director. I was told by my provider that any company taxes in my name as sole director could be included in the IVA agreement.
The IVA proposal was accepted by all my creditors (including HMRC). I have subsequently been receiving letters recently from HMRC regarding the unpaid corporation tax, and the letters are now stating they are going to take away goods.
I am very concerned. I have sent the letters to my provider but have not been able to speak to them about it this week. Any help/advice would be very much appreciated?
Richard
6 months down, 66 to go to freedom from £75,000 debt!!
I don't know anything about corporation tax, but if it was included then you should be covered.
Hopefully one of professionals will be along to advise further.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Kallis
Thanks for the quick reply. After doing a search on the forum somebody else has asked the same question and the answer was 'no'. I can't quite believe that because any unsecured debts and taxes can be included, like VAT for example. HMRC certainly signed up to the agreement so why are they pursuing this and not going through Payplan first?
6 months down, 66 to go to freedom from £75,000 debt!!
Corporatiom tax can absolutely not be included into an IVA proposal - and I am very suprised that you have been advised that it could!
HMRC are very unlikely to have accepted this to be the case - as now demonstrated by the fact that they are chasing for payment. The corporation tax remains a liability of the company and will need to be paid ahead of any dividend payments you make to yourself. I do hope that this will not render the company to be insolvent, in the event that the tax cannot be paid.
Thanks for the reply. I was told at the time by Payplan that this could be included and the proposal was accepted by all my creditors without question. If company tax liability can not be included how come you can definitely include VAT?
6 months down, 66 to go to freedom from £75,000 debt!!
What nonsense! You cannot include any corporate debts into your IVA - they remain the responsiblity unless you have personally guaranteed them - which would be unlikely but please confirm if you have.
Is the VAT liability that of the company or your own personally?
My apologies on that one Mel - I thought it would be included, but I stand corrected and it's another one to remember!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The thing to remember is that a limited company is a separate legal entity with limited liability to it shareholders and directors - unless there are personal guarantees in place.
I shall try and remember that - or leave it to the professionals!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for the info. I can't remember if there were personal guarantees in place so will have to check and speak to Payplan on Monday. I do sort of remember signing something along those lines though.
Surely HMRC would have said something at the creditors meeting regarding this if there was a problem? I have obviously been paying them for the last 18 months also. If it isn't possible surely there are comebacks on Payplan for giving me duff information. Also, the company has not traded since the IVA went through ( 2 years ago) so if it cannot be paid through the IVA what is my next step?
6 months down, 66 to go to freedom from £75,000 debt!!
What I don't understand though Melanie is that the proposal must have been accepted by HMRC at the creditors meeting? Surely, if it wasn't possible HMRC would have questioned it and said something at the time?
6 months down, 66 to go to freedom from £75,000 debt!!
I'm sorry I cannot advise on specific things relating to your case Richard. You will need to take this up with Payplan, and perhaps HMRC themselves.
HMRC often support IVAs based on the figures presented in the statement of affairs, so if this debt was incorrectly included and the proposals circulated to them - they may well have voted based on that estimated claim without doing much digging into the nature of the debt.
I am sure you can get this resolved on Monday - and I suggest that you speak to your IP directly as this is rather important.
