Considering IVA, does tax refund get absorbed by IVA?

Get expert opinion. This is the place for new questions to be posted.
13 posts Page 1 of 1
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Mon Jul 10, 2017 4:30 pm
Hi just a question really in behalf of my husband as we are planning to apply for an iva ... later on.. my question is he work away and he receive tax refund if his lucky to go away like 4months to 6 months out of uk..if we apply for an iva.. does the tax refund hmrc connected to iva. I mean is that a windfall that he need to pay to iva or he can keep.. and my last question.. if ever his due for a tax refund does the hmrc will give to him.The
Money in his account or not.. just a question so that we are ready later what we gonna do..as my husband is in debt really like 20k£ something .. hope u can share your advice thank u..
User avatar
Foggy
Forum Expert
Posts: 22910
Joined: Fri Dec 17, 2010 11:14 am
Contact
by Foggy » Mon Jul 10, 2017 4:45 pm
Hi,

A similar question was asked not long ago here:

viewtopic.php?f=145&t=82926
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Mon Jul 10, 2017 9:35 pm
Thank you so much for your kind help :D :wink:
User avatar
Michael Peoples
Industry Expert
Posts: 14975
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Tue Jul 11, 2017 7:59 am
When someone is self employed there may be liabilities to HMRC for self assessment, VAT or PAYE. HMRC should get a copy of the proposal and thus will know about the IVA but provided there are no post IVA debts to HMRC there should be no problem. HMRC offer and send rebates to us on a regular basis but we return them to the taxpayer.
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Tue Jul 11, 2017 12:13 pm
Hello michael its me again .. if your in iva.. can u live outside uk and just keep paying them until it ends.. is that allow in IVA.thank u and hoping to heat from your
User avatar
Foggy
Forum Expert
Posts: 22910
Joined: Fri Dec 17, 2010 11:14 am
Contact
by Foggy » Tue Jul 11, 2017 12:34 pm
nikita wrote:
Hello michael its me again .. if your in iva.. can u live outside uk and just keep paying them until it ends.. is that allow in IVA.thank u and hoping to heat from your



Hi. You can move to live outside of the UK once you are in the IVA. You will have to inform your advisor of the new address and remember to allow for currency fluctuations when making payments.
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Tue Jul 11, 2017 1:33 pm
Hello foggy thank you again.. Appreciate much
User avatar
Michael Peoples
Industry Expert
Posts: 14975
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Thu Jul 13, 2017 8:13 am
We have clients all over the world in IVAs. As Foggy says you just need to keep the supervisor informed of any change of address and complete up to date income and expenditure accounts.
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Wed Aug 16, 2017 8:38 pm
Hi sir michael can i ask question pls can u reply if your not busy.. if u receive a tax refund.. does hmrc will let the ip (iva) that i receive a refund or does ip will contact hmrc and ask about it, or they will contact my agent who do my tax,, if u spend all the money does it mean u fail immediately the (iva)Thank u
User avatar
Michael Peoples
Industry Expert
Posts: 14975
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Thu Aug 17, 2017 8:05 am
HMRC will usually offer the rebate to the IVA supervisor and in many cases they even send it directly. It is 'treated as a windfall' by HMRC but the supervisor has the power to return the money to the client should he or she wish. To avoid problems, we specifically exclude tax rebates from certain sectors such as construction [the fishing industry has a similar scheme] and return the rebates to our clients. Other firms, especially those with limited experience of self employed cases grab all rebates as windfalls despite this money often being needed for cashflow.

If someone receives a rebate from HMRC directly because HMRC do not realise that they are in an IVA then this could be a breach if the supervisor is not informed. Any such instances you must inform the IP otherwise the IVA is at risk. I hope this makes sense.
User avatar
Foggy
Forum Expert
Posts: 22910
Joined: Fri Dec 17, 2010 11:14 am
Contact
by Foggy » Thu Aug 17, 2017 8:41 am
During my IVA I decided to tell my IP everything that happened with my finances. He could then decide what information he wanted to keep and what information he wanted to ignore -- it was out of my hands and he could not blame me for hiding anything or missing anything by accident.

I am sure they got annoyed with me .. but .. hey ... they knew who I was :-)
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Thu Aug 17, 2017 9:24 pm
Michael Peoples wrote:
HMRC will usually offer the rebate to the IVA supervisor and in many cases they even send it directly. It is 'treated as a windfall' by HMRC but the supervisor has the power to return the money to the client should he or she wish. To avoid problems, we specifically exclude tax rebates from certain sectors such as construction [the fishing industry has a similar scheme] and return the rebates to our clients. Other firms, especially those with limited experience of self employed cases grab all rebates as windfalls despite this money often being needed for cashflow.

If someone receives a rebate from HMRC directly because HMRC do not realise that they are in an IVA then this could be a breach if the supervisor is not informed. Any such instances you must inform the IP otherwise the IVA is at risk. I hope this makes sense.




Thank u so much for your kind help
User avatar
nikita
Posts: 15
Joined: Mon Jul 10, 2017 4:30 pm
by nikita » Thu Aug 17, 2017 9:25 pm
Foggy wrote:
During my IVA I decided to tell my IP everything that happened with my finances. He could then decide what information he wanted to keep and what information he wanted to ignore -- it was out of my hands and he could not blame me for hiding anything or missing anything by accident.

I am sure they got annoyed with me .. but .. hey ... they knew who I was :-)



Thank u so much for your kind help
13 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 13 guests