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What happens if I am due a PAYE tax refund for a tax year 2-3 years before my IVA.

Hi Mare and welcome to the forum

This will be treatd as a windfall and should be paid into the IVA for the benefit of creditors. Have you made your IP aware of this yet?

Just picking up on this! How much is the rebate? Under £2000 they can or you can ask for this to be put into your tax code for next year. That way it is not a windfall. It is ideal if you are paid the dame every month but have the 10% clause on pay as this would show as extra income. Alternatively your I&E would be altered for one year to reflect the extra income.
Check your terms sometimes windfall below £500 you can keep.
All I would say before you accept any payment make sure HMRC figures are correct with your income for last 5 years - the only they will likely to be spot on is if your are PAYE and have been with the same employer for last 5 tax years.

I think this asking for a change in tax code instead of a rebate is very shakey grounds as its tantamount to not disclosing an asset. As soon as you are informed that you are entitled to a rebate you MUST inform your IP,and discuss the way forward.

Paul

how can the creditors claim it all?
you lost money by paying in more tax and the creditors lost a bit becourse of this.surely it must be split both ways.

Its one downside to an IVA ,but where creditors allow you to repay what you can afford and they agree to stop interest and charges,and frequently write off a large portion of debt,they also expect to get their hands on any unexpected cash that comes your way.

We cant have our cake and eat it,and while it may sound unfair its all part of the deal you sign up to!

Paul

Agree Paul.

Its always going to hurt badly and people who know they may end up with a windfall from losing a relative etc must think carefully about being in an IVA, and either ask to not be left anything other than a sentimental item,or ask for your kids to be left money etc in trust.

Paul

In my view, Paul is correct. It's always gonna hurt having to pay over monies but we do have an obligation to pay over what we can.

However if less than £500 and you have the £500 clause in your proposal then you should be able to keep this.

Altering a tax code is as I see it perfectly fine. In fact HMRC are actually allowed to do this rather than giving you a cheque lump sum if under £2000. I can't see anything wrong with this at all. Yes I agree on paying as much back as possible but this is a win win situation. As this can be done is law I'm afraid the IP and creditors could do nothing about it.

To Paul legally this isn't actually an asset.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by langerbridge

To Paul legally this isn't actually an asset.

I think the term is an after aquired asset.

And to not disclose it but to instead take an adjustment to your tax code is the same as handing a winning lottery ticket to a friend and having them drip feed you enough cash per month to not bother your IP with.

Paul

It is an asset and Paul is correct in his advice on this thread. The repayment was due at the time of the IVA, and the proceeds should be paid into the IVA for the benefit of creditors.

Thank you all for the replies I will speak to my IP

Let us know how you get on Mare.