Can I leave my Tax out of my IVA?

Get expert opinion. This is the place for new questions to be posted.
6 posts Page 1 of 1

sarah345

User avatar
Posts: 3
Joined: Tue Dec 03, 2019 4:52 pm

Post by sarah345 » Tue Dec 03, 2019 4:52 pm
I’m in the process of setting up an IVA. I am self employed and my tax bill for 2018/19 is due on 31st January 2020 - I will have the money to pay for it by then but the insolvency practitioners are saying I must pay it into the IVA and they will forward it on. This will mean it will be late and I will incur penalties. Can I not leave my tax out of the IVA I am not behind on it and don’t want to get in trouble with it.

sarah345

User avatar
Posts: 3
Joined: Tue Dec 03, 2019 4:52 pm

Post by sarah345 » Tue Dec 03, 2019 5:01 pm
I have just spoken with them again and have been told that say for arguments sake my IVA is agreed on 18th December my first payment would be due on 18th January so I woukd pay the amount agreed and how ever much I have saved towards my tax bill I pay into the IVA and this is forwarded on to HMRC, the remainder of the amount due on 31st of January is then wiped off and I then pay my payment on account in July as normal and go forward normally - does this sound correct?

kallis3

User avatar
Forum Expert
Posts: 75205
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Tue Dec 03, 2019 5:19 pm
I have no idea on this one but I do know HMRC can be awkward with Iva's. Hopefully someone with more knowledge than me will come along..
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

User avatar
Forum Expert
Posts: 29873
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Dec 03, 2019 5:21 pm
Tax due for the financial year in which you enter the IVA is included as a debt in the IVA. HMRC will set you up with new details going forward from their IVA unit in Worthing. That, ay least, is the theory !
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

sarah345

User avatar
Posts: 3
Joined: Tue Dec 03, 2019 4:52 pm

Post by sarah345 » Tue Dec 03, 2019 5:23 pm
So I won’t get into trouble with the tax man then?

Foggy

User avatar
Forum Expert
Posts: 29873
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Dec 03, 2019 5:52 pm
Tue Dec 03, 2019 5:23 pmsarah345 wrote:
So I won’t get into trouble with the tax man then?
They won't be overly chuffed, but you will not be in trouble, as such.
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
6 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”