tax repayment

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Francesca
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by Francesca » Fri Jul 07, 2017 3:12 pm
Hi guys. Hope you are all well. I was wondering if anyone was in similar situation. Just got the letter from my husband ex accountant that he overpaid his tax while been self employed. Is due to get tax repayment. Over 1000£. We are with creditfix. To pay his tax we had to borrow money from family. With half of that amount we could pay them back. Is there a chance we will be able to keep something? Contract says 50/50 when overtime and similar, all when inheritance. Don't know which would be tax repayment. Than you
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Foggy
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by Foggy » Fri Jul 07, 2017 3:16 pm
Coincidentally Merlin L14 has just posted here:

viewtopic.php?f=145&t=82927

saying his refunds were drawn into the IVA
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Michael Peoples
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by Michael Peoples » Fri Jul 07, 2017 3:16 pm
This may depend on when the repayment relates to. If it was a period pre IVA then it is most likely a windfall and as such captured by the IVA. If it relates to a post IVA period then it is arguable that the funds are working capital and thus excluded from the arrangement. HMRC will offset any post IVA debts to them or any other government department [if relevant] and offer the rest to the IVA supervisor so it depends what the supervisor says.
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MerlinL14
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by MerlinL14 » Fri Jul 07, 2017 3:21 pm
Hi, I had 2 Tax refunds during my IVA, in accordance with the T's and C's I informed my company who then graciously took them both, 100%. They weren't even over the "£500 windfall" threshold. Yes, I cried :?
Francesca
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by Francesca » Fri Jul 07, 2017 3:25 pm
I wana cry hahah we were on IVA already Michael, so family was our only option to pay it. Is that any difference that money won't be transferred from hmrc directly but to accountant, them will take any fees and transfer rest to us
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Michael Peoples
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by Michael Peoples » Fri Jul 07, 2017 3:29 pm
HMRC may send the money directly to your accountant if they are aware of the IVA. Under the R3 T&Cs tax rebates are 'treated as windfalls' so if there was the £500 windfall inclusion in the IVA then the funds should not be passed over to creditors in my opinion.
Francesca
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by Francesca » Fri Jul 07, 2017 3:32 pm
Thank you. You are all always so helpful
Francesca
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by Francesca » Fri Jul 07, 2017 4:26 pm
One more question guys lol does it make any difference if the tax from self employed was April til October last year I think (around 670) so that's before the iva and the current employment tax is less then 500? Thank you
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Michael Peoples
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by Michael Peoples » Mon Jul 10, 2017 7:50 am
If the rebate was for a pre IVA period it is more likely to be captured as a windfall. However if you have expenses such as accountancy bills to pay from this money your supervisor may allow this.
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nikita
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by nikita » Mon Jul 10, 2017 7:31 pm
Hello does iva know if u get tax refund.. would hmrc give it to you or not pls let me know .. thank u .. and what happen to your tax refund
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recovering
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by recovering » Mon Jul 10, 2017 7:59 pm
I had a refund it was sent to me. I asked creditfix whether it needed to be paid over to them, initially they said it did but I argued as it was under the windfall clause and under £500 they backed down and let me keep it
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nikita
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by nikita » Mon Jul 10, 2017 8:56 pm
Hello thank you it was nice to hear from you ., such a helpful.. :P
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nikita
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by nikita » Mon Jul 10, 2017 9:55 pm
Hi francisca update pls.. what happen to your tax refund,, does iva get it all when u receive the tax rebate from hmrc .Can u keep a little especially like if u need MOT of car coming and some emergency from family need to use the money.. pls let me know .. thank you very much
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nikita
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by nikita » Tue Jul 11, 2017 6:43 am
Hi merlin with the tax refund u had before during your Iva.. did u received first the money direct in your account.. and did u informed your Ip when u get your tax refund..and they get it all.. thank you
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Michael Peoples
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by Michael Peoples » Tue Jul 11, 2017 7:56 am
When we draft proposals for those employed in construction we specifically exclude the tax rebates as the money is working capital and needed for essential expenditure. We prepare projections showing costs such as accountancy, insurance, vehicle repairs etc and when the rebate arrives it is normally used for these cash items. Not all firms operate the same way and many have no idea of self employment so be careful which firm you use.
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