Tax refund of pre debt time. Can i avoid paying it to IVA?

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ZOWIE2017
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by ZOWIE2017 » Thu May 25, 2017 3:11 pm
I have found out that I may be due a substantial tax refund for tax I paid when I was training and should not have been paying tax and NI. This training is pre debt.
I really do not want to have to give all this money to IVA as it is money that I have in effect earned through working.
Is there anyway I can avoid having to pay all monies owed to IVA? Things are really tight and difficult for me and my family and this would make such a difference.

Can I offer to end IVA early using money given to me by a relative? My brother who I have only just told about the IVA is offering to give me cash to end early.

Please advice.
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Foggy
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by Foggy » Thu May 25, 2017 3:43 pm
If you can get a full and final offer through AND the completion certificate issued before you are officially notified of any incoming money it would not be captured by the IVA.
ZOWIE2017
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by ZOWIE2017 » Thu May 25, 2017 4:48 pm
If I do not end the IVA early is there any way I am able to keep any of the possible rebate?
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Foggy
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by Foggy » Thu May 25, 2017 5:11 pm
Tax refunds are usually treated as windfalls ... so. if it is less than £500 you should be allowed to keep it. If it is over £500 you could try to argue that is be treated as "extra income" in the same way as overtime (being that is is basicallu unpaid wages, rather than a win on the lottery or an inheritance). If the IP agrees to that you should get to keep at least half of it ( maybe a little more if you have the 10% exclusion as well as the 50/50 split.
ZOWIE2017
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by ZOWIE2017 » Thu May 25, 2017 7:07 pm
Thanks!
I really don't want to have to give it away :(
Will try and sort out paying off IVA before it comes!
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Shaun Vickery
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by Shaun Vickery » Fri May 26, 2017 11:37 am
I suspect that the fact that you are due the refund, whether or not it has been physically paid, whilst you are in the IVA would render you responsible to disclose it to your IP or risk potential action if it is discovered.

Perhaps one of the other experts can confirm?
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Foggy
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by Foggy » Fri May 26, 2017 11:58 am
Shaun Vickery wrote:
I suspect that the fact that you are due the refund, whether or not it has been physically paid, whilst you are in the IVA would render you responsible to disclose it to your IP or risk potential action if it is discovered.

Perhaps one of the other experts can confirm?



You are correct Shaun --- but, at least for now -- the original post states "MAY be due a refund" .... all bets are off when officially notified of a refund.
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