Small tax rebate

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LJColeman

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Joined: Mon May 10, 2021 9:08 am

Post by LJColeman » Wed Aug 25, 2021 2:13 pm
Hi all,

Hopefully a easy question. I entered my IVA in May 2021. I have just had a tax rebate come through for last year (2020 - 2021) and i am owed £188.00 do to the fact i overpayed on the company car tax.

Do i need to declare this money or not as its such a small amount.

I could really do with keeping the money as our family car is due a Service & MOT this month which i dont have the funds for at the moment so the extra money would really help us.

Any thoughts greatly appriciated.

Lewis

Breezy

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Joined: Thu Jun 24, 2021 10:04 am

Post by Breezy » Wed Aug 25, 2021 2:41 pm
I can only repeat Foggy's advice / thoughts, as expressed here: tax-rebate-to-the-iva-t91775

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."
I am not qualified to give advice and can only state my opinions, based on my IVA experiences.

LJColeman

Posts: 9
Joined: Mon May 10, 2021 9:08 am

Post by LJColeman » Wed Aug 25, 2021 3:58 pm
Thank you for the reply.

I have contacted Bennett Jones as i dont want to get in trouble for doing something wrong so if i have to hand over the £188.00 then so be it. Its certainly not worth risking failing my IVA over.

I will let you know what my IP say once i have a reply!

Thanks again for the advice.

LJColeman

Posts: 9
Joined: Mon May 10, 2021 9:08 am

Post by LJColeman » Sat Sep 18, 2021 7:41 pm
Hi all,

Just to update you on this, my IP confirmed it was fine for me to keep the tax rebate.

Foggy

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Location: United Kingdom

Post by Foggy » Sat Sep 18, 2021 8:09 pm
Sat Sep 18, 2021 7:41 pmLJColeman wrote:
Hi all,

Just to update you on this, my IP confirmed it was fine for me to keep the tax rebate.
Great news !
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
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