Payment break

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Coline81

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Post by Coline81 » Wed Jan 09, 2019 1:21 pm
Hi...do you think my Iva provider will allow us to take a payment break in order to pay the self assessment tax bill? We have to pay an on account payment as well as last years tax bill and we’re really struggling.

Foggy

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Post by Foggy » Wed Jan 09, 2019 1:46 pm
Only your provider can answer this, I am afraid. But payment breaks ( which are added back on at the end) are not uncommon.
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

Lisa Thomas

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Post by Lisa Thomas » Thu Jan 10, 2019 9:17 am
If you are struggling to meet your contributions there may be a problem with your disposable income calculations or your spending.

You need to have a look at the original I&E used and why you do not have enough funds to pay your post IVA taxes, which should have been allowed for.

When did your IVA start as HMRC will claim in the IVA for taxes to the whole year ended April after it commenced?
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

Coline81

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Post by Coline81 » Thu Jan 10, 2019 10:34 am
It starts 28th Nov 2017 and we haven't had any payment breaks up until now. This is the first year that my husband has had to make an on account payment which we had never even heard of before and our accountant didn't do our tax return for 2017 - 2018 until Sept 2018 when we were advised that not only did we have last years tax bill but 50% of next years....at least we know this now and can manage our money appropriately going forward On top of this my MOT was £305 in Nov so we fell behind on the council tax bills and now there is a problem with my exhaust! I obviously need the car to get to work and back and without this payment break i'm not going to be able to afford to get it fixed this month. I have sent an email which includes all this detail so I am awaiting a response and then I can phone the mechanic! Why do these things always have to happen in January :(

Coline81

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Joined: Tue Oct 24, 2017 12:51 pm

Post by Coline81 » Wed Jan 16, 2019 9:41 am
Well i emailed my IP on Wednesday evening and still haven't got a response. I asked her on Friday how long it normally takes to approve a payment break and she said it had been forwarded to the supervisor inbox for approval and someone would be in touch shortly. I've taken my car to the garage today as I was sick of walking to the train station and home again so if the payment break doesn't get approved i'm going to be in a bit of bother as there's no way i'll have the money to pay the next IVA payment on the 28th Jan. No really sure why it takes so long to approve it! Does it have to come in writing ie via post or will they just approve via email or my online IVA account?

Foggy

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Post by Foggy » Wed Jan 16, 2019 9:47 am
They might approve via email or phone -- but ask for it in writing ( just in case) as well. The only reason it takes so long to approve are internal processes and workload. Some firms have an IP overseeing a few hundred caes andd some have them overseeing thousands !!
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

Lisa Thomas

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Post by Lisa Thomas » Wed Jan 16, 2019 10:02 am
The tax debt for the whole year ended April 2018 will be included as an unsecured creditor in your IVA.

You will then need to pay for tax from 6th April 2018.
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

Foggy

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Post by Foggy » Wed Jan 16, 2019 10:13 am
Lisa Thomas wrote:
The tax debt for the whole year ended April 2018 will be included as an unsecured creditor in your IVA.

You will then need to pay for tax from 6th April 2018.
The problem is now you are expected to pay half of next years tax bill (based on current years figures) up front at the end of January and the other half by the end of July. Which is an issue when in an IVA .... you are expected to pay it before you earn it !!
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

Lisa Thomas

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Post by Lisa Thomas » Wed Jan 16, 2019 10:16 am
But at least they don't have to pay 'last years' tax bill, which they thought they did. Perhaps HMRC will agree that the IVA wipes the slate again and allow time to pay as if it was the first year.
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

Coline81

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Post by Coline81 » Wed Jan 16, 2019 1:06 pm
The tax bill from 2016-2017 was included in the IVA as we took out the IVA in Oct 2017. So we have to pay the tax bill for 2017-2018 and half of the tax bill for 2018-2019 by the 31st. Plus all the car issues I've had in the past 3 months, I've paid out over £500 for repairs and MOT.

Lisa Thomas

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Post by Lisa Thomas » Thu Jan 17, 2019 12:17 pm
I don't think that's correct. All of the tax for the years ended April 2018 will be included as a creditor of your IVA...
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

Foggy

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Post by Foggy » Thu Jan 17, 2019 12:23 pm
I agree with Lisa -- tax liability up to the end of the tax year in which the IVA commences should be included in the IVA.
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

Coline81

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Joined: Tue Oct 24, 2017 12:51 pm

Post by Coline81 » Thu Jan 17, 2019 6:18 pm
My goodness I'm so confused! I've looked at the paperwork....so we took out the IVA end Oct 2017. In the paperwork it gives a projected income to October 2018 with a projected tax payment of £938. That is the only self assessment tax figure that is included in the list of creditors but we didn't pay any tax ourselves online last Jan because we were told it was included in the IVA....but the tax bill for 2016-2017 was only £722. Does that mean I take £216 off what I thought I had to pay at the end of this month? I've emailed my IP for confirmation and also advised that I still haven't heard about the payment break yet!!!!!!!!!!!!!

Coline81

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Joined: Tue Oct 24, 2017 12:51 pm

Post by Coline81 » Fri Jan 18, 2019 6:17 pm
Ok I’ve checked the annual statement that we received last week. It has 2 HMRC amounts on it one which is £722 which is definitely for 2016-2017 tax bill. The other amount is for £876 which if I work it out would be approx the tax bill for 5.5 months after the start of the tax year up until we took the IVA out in October. The bill for the tax year is £1903. So I’m going to pay the tax man £1903-£876 plus the on account payment do you think that sounds right? If I don’t get a response back from my IP by the end of next week I’ll have to phone and get confirmation but at least these figures tie in with what you’ve said.
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