Tax rebate to the IVA?

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Bob451

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Post by Bob451 » Thu Jun 10, 2021 4:36 pm
Hi
I'm new to the Forum and have just started an IVA.
i work offshore and as I'm out of the UK for 6 months a year i am entitled to my tax back every year.
my Question is will all of this rebate go to the IVA ?

Foggy

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Post by Foggy » Thu Jun 10, 2021 4:55 pm
Probably, at least in part. If they treat it as extra income you get to keep around half of it. In reality it is actually basic income and, if it wasn't deducted at source initially, it would simply have increased your take home pay and, therefore, add to your disposable income and be sucked into the regular IVA payment in total.
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

Bob451

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Joined: Thu Jun 10, 2021 3:25 pm

Post by Bob451 » Thu Jun 10, 2021 5:23 pm
Hi Foggy
Thanks for the reply, I did think as much it does state on my contract that it is classed a windfall.
But I just read online that if your claiming for the current year you get to keep it?
But if your claiming for 4 years they take it?

But I was just doing the maths , if I do give it all to the creditors it could mean my IVA Being paid off in 4 and a half years . So not to bad .

Foggy

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Post by Foggy » Thu Jun 10, 2021 6:02 pm
If it is drawn into the IVA it will not count towards your contractual IVA repayments, but will supplement them. The IVA will not end early once you have made the equivalent of the 60 or 72 agreed payments. It will only end early (ignoring full and final offers and the like) if you hit the sum total of the full original debt, plus fees and possible statutory interest.

A tax refund is not, in my uneducated opinion, a windfall --- a windfall is not generally work related income. But some of the definition are a bit on the woolly side !
IVA's are, although usually (but not always) based on a standard format, not all the same. They have a lot of leeway and discretion and are also open to differing interpretations. So yours could be written so that the windfall tag could be applied.
The treatment of tax rebates and refunds also changes according to your employment status --- self employed are sometimes allowed this to be retained as working capital.

Unfortunately, all the above is not much help. Over the 10 years, or so, I have been dealing with IVAs they have become far less 'standard' and predictable. A slippage due to be addressed, in part at least, with the new incoming Protocol version.
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

Bob451

Posts: 13
Joined: Thu Jun 10, 2021 3:25 pm

Post by Bob451 » Thu Jun 10, 2021 8:04 pm
Yes understand if I can keep the 10 % of it and the rest is split 50/50 that would be ok

Bob451

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Joined: Thu Jun 10, 2021 3:25 pm

Post by Bob451 » Fri Jun 11, 2021 5:14 am
The other thing is if I do have to pay this towards the IVA, how do you do this?
Do I contact my IP ?
Will he give me a sort code account number to pay this to them?
Hopefully not his own lol.

Sorry I’ve just started this IVA so I’m a little green as to how it all works

Foggy

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Post by Foggy » Fri Jun 11, 2021 7:03 am
You would, first, as you say, agree figures with your IP. Then make a manual payment into the account your regular IVA payment goes.
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

Bob451

Posts: 13
Joined: Thu Jun 10, 2021 3:25 pm

Post by Bob451 » Fri Jun 11, 2021 9:55 am
Ahhh ok
Thanks Foggy
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