I have incurred inland revenue fines and a tax credit overpayment.

[James.pd]

I have incurred inland revenue fines and a tax credit overpayment of about £2000. Can the hmrc take this out of my tax code whilst I'm in an IVA or can I include it? These were not intentional debts.

[Shining]

Hi not sure on this but will bump up for an expert but would definitely be worth running by your IP.

[ClareSilver]

The debts can be included in an IVA. IS your IVA up and running or are you still in the drafting/proposal stage?

Tax credits normally reduce further awards to enable them to claim the overpayment back, however if the liability is included as a creditor, then you should receive your full entitlement once the IVA has been approved.

[Mrsfaz]

Hi

I had a large tax credits overpayment included in my IVA and it has not affected my tax code.

Mine weren't intentional either, I always updated them any changes and have no idea how it happened.

[MelanieGiles]

If you are already in an IVA, do the fines and overpayment relate to the post or pre-IVA period?

[Hyperdrive]

I`m self employed and was given a new Self Assessment account, the old one contained the previous liabilities and the new one started from the IVA acceptance date. Having said that the VAS took over 6 months to set it up, and they still havn`t sorted the new VAT arrangements.