MelanieGiles wrote:one quick question should a tax rebate for whatever reason u recieve it be entered into an iva agreement in the first place ?
Michael has adequately answered all of the technical points here, but for my two pennorth I feel that you have been badly advised as to the initial set up of your case and the way it appears to have been managed with regards to the tax rebates. Post-IVA tax rebates are not payments which should be made to a Supervisor, they are needed to fund the ongoing working capital requirements of the business.
This post clearly highlights the need for self-employed clients to seek advice from firms which specialise in dealing with this type of case. For your IP to state that they have never heard of the CIS scheme is frankly appalling!
Michael Peoples wrote:been talking to my ip and she has suggested a veriation from the calculations this is going to halve my payments to £176 per month but she is saying they will still keep all my rebates ? as the rebates ahve been included in the agreement thi has been done without my knowledge or even consulting me i feel iv been seriously mislead by this company iv asked for their complaints proceedure
Ask her to accept the tax rebates as the only payments to the IVA as you have no monthly surplus. This should still achieve the dividend while giving you sufficient monies to keep going. Or she could call a variation to allow you to keep the rebates and make ongoing monthly payments but something will have to be done or your IVA has to fail.
What has she suggested?
MelanieGiles wrote:just spoke with the hmrc and they told me they donot deem any overpayment as a windfall but they have to send any overpayment to my administrator for dispirsal to my creditors i have now done an expenses chart for the last yr and with my income they agree that my surplus on my income for the the yr 2008/09 is only £176 iv been struggling to pay £324 for 10 months iv only been able to spend £140 every three weeks to feed my partner my daughter and myself im only down to repay £12000 to my creditors and £7000 to my iva adminstrators in 10 months iv struggled and repayed nearly £6000 am i in my rights to ask for some of the post iva to be repayed to me as the figures they were working off were totally wrong due to the fact that i nvr saw a spread sheet for my expenses they did these without my knowledge ????
I cannot understand the logic of them retaining your tax rebates, and suggest that you inform HMRC that tax rebates are to be sent to you directly rather than to the Supervisor. Even HMRC agree that post-IVA tax rebates cannot be deemed to be windfalls.
Michael Peoples wrote:i have been in discussion with my ip shes still adamnat that the hmrc deem any over payment as a windfall and i was wrongly advised how ever i did point out that unless i get a satisfactory conclusion to this and that on the true figures of my expenses supplied by me as my income surplus was only £176 and the fact that this iva was worked out on figures that i have nvr seen or agreed to that ihave infact over paid on my iva and struggled to do so and we agreed this however she advised me that the overpayment cannot be repaid in the form of a rebate so i threatened her with my sending a complaint about her company for mis representation and the fact i nvr saw my expenses befor they agreed any repayment . she is now seeking advise from their lawyers as to a way that a rebate can be given back to me in the sum of a £1100 yay a victorey if i get it and i asked if they could keep my future tax rebates as my payments for my iva and its been agreed pending approval of my creditors do u think this is satifactory ?
It would be difficult to have any money returned but your IP could ask creditors whether they would sanction some form of a rebate if there are specific things urgently needed. IVAs are not supposed to cause hardship to you or your family.
MelanieGiles wrote:seems some people are not up to spec on certain issues ill await results form my discussions with my ip as to what course of action i will take thanks for your help u might hear from me again soon
I am suprised that you have received that feedback from HMRC, and suggest you call again and take the name of the person who is providing such advice. You should also ask them under what authority they are retaining your money and sending it directly to your Supervisor.
Michael Peoples wrote:update spoke to my ip the proposal going to my creditors is that i stop payments till nov as iv overpayed and they cannot repay this to me i start my repayments in nov at £176 instead of £324 and they keep all my tax rebates in the coming 4 yrs left on my iva to pay the correct dividend to my creditors i now have to see if my creditors accept the proposal fingers crossed tthanks u for all your help and advice
Sounds a bit more positive. There is a perfectly good IVA in there for all concerned and this problem just needs resolving.
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