Hi ! I am self employed...if I was to enter an IVA is it mandatory for me to include my self assessment tax with my other unsecured debts..even though I am up to date with my self assessment payments?.
I do not know the answer but will keep it bumped up for another poster.
Alternatively why not take a look at www.iva.com for a list of companies and maybe talk to 2 or 3 about your situation and they will be able to give expert advice.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Up to April (end of the financial year), the payments you would've made th HMRC come into the IVA. Once the new financial year starts, an allowance should be made in your I&E to make payments to HMRC.
Hi, my husband is self employed and his IVA started on 4th January 2013. As per Claire's answer, he is making 3 payments to HMRC (via our IP) to cover tax due for 2012/2013 and then his tax/NI liability for 2013/2014 has been included in the calculations for his net income. He was up to date with payments to HMRC and we were saving towards the payments due in January/July but were told to stop as the "debt" would be included in the IVA. Once we get to April, we will start saving again towards the payments that will be due in Jan/July 2014.
Important to remember that all of the tax for the fiscal year in which the IVA is taken out it is a claim in the IVA. This will usually have to be estimated as the period will not have ended at the time the IVA is taken out.
Hi Melanie im about to enter IVa tax has been listed as a creditor do i just fill in my tax return as normal in April? Does the IP arrange its payment? Will I be expected to make any payments on account?
Thank you!
Last edited by OnTheUp1976 on Fri Feb 01, 2013 2:23 pm, edited 1 time in total.
Yes - you will still need to submit your tax returns for the current year as normal, and when the claim for this current year is agreed then HMRC will advise the tax office. Hasn't this been explained thoroughly to you by your IP?
No Melanie it has not, I emailed them yesterday to ask why HMRC was included on my creditiors list and they explained that it was now being included in my IVA they have not told me what I need to do about it though!
I`m in a Partnership IVA and have recently submitted my self-assessment returns for 2012.
I noticed we now have new tax reference numbers (ie account numbers) - the old one includes past liabilities pre IVA, and the new one is post IVA going forward.
Thanks everyone for the replies....really appreciate your time. I am still a little confused ! If I eneterd into an IVA after 5 April and was up to date with my payments (ie had paid the amount due 31st Jan..covering tax for y/e2012 plus 1st payment on account for y/e 2013)...and ..my y/e 2013 accounts would then be available to calculate
my tax liability for y/e 2013... what would be I be paying to HMRC and when..and what would be included in the IVa and hence paid to the IP?
Sorry if I am being a tad dumb !
Also is the date used for the cutoff the date the IVA is apllied for or the dat it comes into force?
The date is the day the IVA is approved at the creditors meeting.
As for your payments on account I can`t really help as our business posted a loss in the preceeding year so we had none to make.
Tbh the Revenue side of going into an IVA is a bit messy because at Worthing they are working to a 6 month backlog and we were fortunate in that they got round to sorting our case in November, in time for our SA submissions last month, so our position is clearer now.
You may find the following link helpful
