IVA REVIEW (END OF YEAR 3) GRANT THORNTON
Grant Thornton sent us our IVA review papers a month later than usual and have not completed our review (due end Nov), though they have written to creditors and said they are awaiting information from ourselves. The issue stopping them completing the review is my partner's liability to higher rate tax on the interest element of successful PPI claim payments. One creditor sent such a payment direct to GT, copy letter to ourselves, with all the information regarding payment breakdown, interest paid, and 20% tax deducted. GT know there is a higher rate tax liability (another 20%) as they can see this from my partner's salary and P60s for the past 3 years. Yet they are saying they can't complete the review until they get confirmation in writing from HMRC that an extra 20% is due and how HMRC want the extra 20% to be paid (usually underpayment is by tax code adjustment; in fact GT should know this from other underpaid tax they treated as an "expense" in previous years' reviews). How the tax is to be paid shouldn't be the issue if we are going to have to pay it anyway (especially as the net cheque was paid direct to Grant Thornton), and we have put the figure in the Expenses ("other") part of the I&E form as in previous years. So GT seem to be delaying our annual review finalisation unnecessarily. Please advise your views on this delay, and if you know how HMRC usually deal with extra tax liabilities on PPI interest paid. Needless to say, HMRC have not answered the 'phone when we have held on - at substantial cost to us - and have not yet replied to a letter sent weeks ago. Many thanks.
I cannot speak for other firms but we did rebate 40% of the interest element to our clients so they can account to HMRC themselves. This is rarer now as either the creditor or ourselves pays HMRC. You really need to ask GT.
