www.iva.co.uk

Hi, as I have posted before I went into and IVA on the 26th Nov 2013. I am self employed and therefore all my tax for the year 2013-2014 was captured in the iva. I made the additional payments from tax charge for the first few months

I take this to mean the Jan 2014 and July 2014 payments on account for the 2013-2014 return and other outstanding HMRC debts to be included in the provisional claim, and the balancing adjustment, ordinarily payable in Jan 2015 in the revenue's final claim.

I filed my return in December, Accordingly I was, as previously advised on the forum, expecting either to hear nothing until jan 2016, or to see a request for a payment on account for the 2015 return.

But I understand that the usual course is that I will pay nothing until Jan 2016 when my entire liability for 2015 will be due along with any payment on account for 2016.

When I set up the IVA I was given a new UTR for all post IVA debts. I asked my ip who told me that the return for the 2013-2014 year should be filed under my old UTR as that was captured in the IVA. That I (or rather my accountant) did.

I have just had a notice through from HMRC fining me £100 for not filing a return under my new UTR. But I was advised that one isn't due for that UTR until jan 2016 for the year 2014-2015.

Is this a common occurrence? is it a product of the systems not being aware that a return isn't due on this UTR yet? and that there is an old UTR for the 2014 year.

Or was I misadvised that the 2014 return should be filed under the old utr? I cant see that I was. It seems to me that it makes complete sense to file it under the old UTR as it was within the IVA. Otherwise what is the point of a new UTR?

I would be grateful for any help, the last thing I want is to fall out with the revenue! when I have managed to keep everything on track so far!!

Best wishes all

Hi

Hopefully Michael Peoples will pick this up, he is very experienced with both self employed and tax questions

Regards

This sounds like an error on the part of HMRC. You will have received a pack from their Voluntary Arrangements Service [VAS] in Worthing which has a dedicated team there. It may be worth giving them a call to clarify as they do make mistakes but also advise your IP who can also help.

You have done nothing wrong as far as I can see as the new UTR is not valid until 2014/15 therefore that return is not due until Jan 2016.

Hi Michael,

You have been most helpful to me in the advice you give on this forum.

I just want to be absolutely crystal clear in my mind.

I entered IVA in Nov 13. At the time I had the previous July's POA (10k) outstanding only (for the year 12-13)

The revenue's provisional claim on the IVA was 33k.

Am I correct to conclude that this claim was made up of the outstanding debt of 10k, plus any balancing payment for the 2012-2013 year, plus the Jan 14 and July 14 POA's for the 13-14 year?

The revenues final claim will include the balancing adjustment that would have been due in January 15. Accordingly my first post IVA return will be the 14-15 year, return due in Jan 16. And that one will be the first one that utilises the new UTR?

Sorry to trouble you about this, but when I got that fine I started to ask myself have I got the years wrong or something - but I think I have answered my own question.

Your calculations are correct unless we are both going mad. The HMRC claim in your IVA would be anything owed to them up to and including the tax liability for 2013/14. There seems to be a mistake here which should be easily rectified.