My iva included debts to VAT. I am now registering again and the first return is a refund - will that be paid to me or will they keep it for what I owe in the IVA?
HMRC cannot offset a post-appointment refund against a pre-appointment debt. Is your registration a continuation of your earlier number, or a brand new one?
I have a self employed Partnership IVA (we have a shop). Our IVA was approved on 2 March. Prior to this we had accumulated a VAT liability due to difficult trading conditions - we have subsequently changed direction and business is picking up.
I submitted quarterly VAT returns for the periods ending 30 April and 31 July as normal despite my IVA having started, as I was aware the VAS in Worthing have a backlog of work and I hadn`t heard from them.
However I recently finally got official notification from Worthing of our registration with new income tax and VAT arrangements. Basically what I had to do was go back through my accounts and submit 2 revised VAT returns for periods before and after our IVA start date of 2 March up to the end of July. This is to establish exactly how much of our liability falls within the pre and post IVA date.
I understand that once our self assessment and VAT affairs are determined at the VAS then a statement of our tax liabilities is sent to the IP.
Hope this is useful !!!
