Hi I am self employed and I am in my 8th month of an IVA. I have recently submitted my tax return and maybe owed a tax refund. Do HMRC pay the money into my account or will it go straight to my IVA?
It should go to your account but might then still be due to be passed on to the IVA. Over the years I have seen tax refunds treated every different way by different IP's and only your own IP will be able to confirm whether they want a bite of the cherry too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I did the covid thing recently and HMRC emailed me that my tax code has been adjusted so I guess I will just get a little bit more take home each month and never see a refund as such.
If your IVA is protocol compliant, any rebate due to you from HMRC should really be dealt with as follows;
26. Set-off of repayments
Any repayment due to you from HMRC relating to a period before the
arrangement was approved shall be applied firstly against the HMRC claim in
the arrangement. Any surplus will be repaid to you and you must pay it to the
Supervisor for the benefit of the arrangement.
Any repayment due to you from HMRC relating to a period after the
arrangement was approved shall be applied firstly against other sums owed to
HMRC for the post arrangement period. Any surplus will be repaid to you and
you will pay it to the Supervisor for the benefit of the arrangement.
Hi! I used to work for one of the UK's biggest Insolvency Practitioners - I don't work for an IP anymore but still have an extensive knowledge of the IVA industry. How can I help?
