Tax refund not put toward IVA. Will I be in trouble?

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Francesca
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by Francesca » Thu May 11, 2017 9:46 am
Hi. Never really have a look at my payslip. Goes straight to the folder. I am on IVA since February. In February/March I got higher wage then usually. Thought its for overtime. When I checked my p60 now I realized it was tax refund. As I know any tax refund should been put toward my IVA. I didn't do that. Will I be in trouble?

Thank you in advance.
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kallis3
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by kallis3 » Thu May 11, 2017 9:55 am
Hi,

I think you need to speak to your IP about this.
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Foggy
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by Foggy » Thu May 11, 2017 9:59 am
As Kallis says, have a chat with your IP --- it was a genuine oversight and can be put right.
However, do have a read of your proposal again as you have not grasped some of your responsibilities --- even if this was overtime, it has to be accounted for and any share due paid to your IP right away. You must get into the habit of checking payslips every month.
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doritos
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by doritos » Thu May 11, 2017 10:20 am
When you get in touch with your IP.. its all about wording..

Do NOT mention that you thought it was overtime and ignored it, makess you look bad (and as mentioned, you should be keeping a slightly closer eye on payslips, but then you may not spot a tax code change, so thats ok.

Just explain that you appear to have overpaid on your tax, and its come back in as a refund (bust out the calculator and see if its more than 10% of your take home wage, if it is it may fall into 10/50/50 rules), but you are after keeping it I guess (every little helps in an IVA), but you have done your bit and if it is less than 10% you have tipped them off to nothing essentially, but done your bit..

Remember.. don;t say "I just thought it was a bit of overtime" as you are aiming down the line of, well I overpaid and starved for a few months and now I got it back can I keep it pls...

I'm not an IP by any shake of the dice, but thats how I'd roll it
Francesca
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by Francesca » Thu May 11, 2017 10:47 am
Just got confused as when I went from part time to full time and told CF straight away, been told to not worry and wait til annual review.
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kallis3
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by kallis3 » Thu May 11, 2017 11:11 am
Probably best to wait until CF get in touch.
Francesca
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by Francesca » Thu May 11, 2017 11:19 am
Thank u all. Waiting for them to replay. What can be the worse scenario u think?
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doritos
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by doritos » Thu May 11, 2017 11:29 am
worst scenario is "you owe us x... pay us"

best is "ok well, its within the guidelines you can keep it"
Francesca
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by Francesca » Thu May 11, 2017 11:30 am
All long my IVA won't failed because of that
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Michael Peoples
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by Michael Peoples » Thu May 11, 2017 11:57 am
Tax refunds are usually treated as 'windfalls' under the terms of the IVA. Therefore if your refund was under £500 you can always argue it was exempt and therefore yours to spend. If it was over £500 then you want to treat it as income under the 10% 50/50 rule and not a windfall.

How much was the net amount of the increase?
Francesca
Posts: 59
by Francesca » Thu May 11, 2017 12:10 pm
Around 403£. I spoke to my hubby and know now what was the mistake. I got refund exactly same time when I had my first wage after going full time. That's why I got confused. Well what ever it was will see what Cf says. Thank u
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Michael Peoples
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by Michael Peoples » Thu May 11, 2017 1:00 pm
If that is the case the argue that it was a windfall and under £500. Ours terms and conditions clearly state that tax refunds will be treated as windfalls so if yours are the same and you have the £500 limit then in my opinion you have done nothing wrong. Oddly enough, had it been overtime, bonus, commission or similar then any money due to the IVA should have been paid over to the supervisor within 14 days and you would be potentially in breach.

As the money is a windfall under the terms of most IVAs then make sure your IP is aware of this should they seek to recover anything from you.
Francesca
Posts: 59
by Francesca » Thu May 11, 2017 1:53 pm
Thank u very so much x
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recovering
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by recovering » Thu May 11, 2017 4:43 pm
I had a tax rebate under £500 and CF treated it as a windfall and I was allowed to keep it. I was an ex PJG'er but I didn't have to argue for 2 long with them about it
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