Apologies if this appears twice, not sure where the first went!!
My husband's tax was included in the IVA for year 1 when it was approved last year (he's self-empl). We are now due our annual review, can anyone advise if we are allowed to include tax contributions in our I&E? His bill for Jan 2011 is estimated at £1000, can we say put £100 down on the I&E to allow us to save for this huge bill in January? If this isn't allowed how are we supposed to find this sort of money?
Your husband's trading projections - which I assume were prepared by his IP or accountant to support the voluntary arrangement proposals - should have made provision for ongoing taxes. IVA contributions for the self-employed should only ever be calculated after provision for the taxes due on earned profits.
Thanks Melanie - i only wish we had gone with your company!! In the proposal it says that only yr 1 is included in the IVA, no mention of the next 5yrs. (my husbands is for 6yrs at the request of NR!!) I e-mailed Payplan at 8am this morning but haven't had a reply. My husbands earnings have reduced dramatically since last year, we are only just surviving, if we had to find this extra money there is no option but to let the IVA fail. Some weeks we just have no money to survive on, sometimes i think bankruptcy would be the better option.
Hi
Your payments from year two onwards into your IVA will not include tax payments so should reduce and your husband should put his tax money aside. If his earnings have reduced you will need to contact your IP and discuss asap
Regards