www.iva.co.uk

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.

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

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.

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.

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

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.