www.iva.co.uk

if you are trading as asole trader and owe the tax man money how will this work with an i.v.a? do you have to constanly pay the tax and national insurance over the 5 years.

Hi there and welcome to the forum

Your tax for previous and the current fiscal year will form a claim in the IVA, and then for future tax years you will pay your payments in January and July in the normal manner.

hi if my iva started sept 07 , my tax year as a sole trader runs jan - dec would the tax for o7 and 08 ( 2years) be included in the iva ...then would i have to pay for o9 this years at beginning of 2010????i keep getting letters saying there is interest adding on to my owed tax.at the end of 5 years wil the tax man clear the outstanding monies of relating to all years previous of 2009s trading?? thanks

I have just deleted your other thread Justin as it is a duplicate of this one - just in case you wondered where it had gone!

If your IVA started in September 2007, that is part of fiscal year 2007/2008 and therefore all of the tax deemed due in that year will form a claim in the voluntary arrangement.

The next tax year you will be directly responsible for is 2009/2010 - and you will make the first payment on account for that year on 31 January 2010, and the second payment on 31 July 2010, with the balancing payment made on 31 January 2010.

The remainder of any debt due for tax years included in the IVA will be written off once the IVA has concluded.

Justin, I don't know if it a computer gremlin, or yourself, but the same question has now been posted three times.

I have deleted it twice as it has been answered on this thread.

Hi Justin.

You are also responsible for the tax due on your profits in the tax year 08/09.

Yes that is absolutely correct - sorry I missed a year out - so to be clear - first payment on 31 January 2009, second payment on 31 July 2009 and balancing payment on 31 January 2010.

Hi i cant seem to understand my situation..i pay my accounts from january - december does that mean all monies i owed previous to my iva will be cleared at the end of my iva (5 years)and jan 2007 - december 2007 profits will also not be payable, although jan 2008 - december 2008 profits wil be payable and when??? sorry if i sound daft just finding it all difficult to understand ..many thanks

It might be easier if you take advice directly from your accountant on this point, so that you can fully understand which tax years form claims in the arrangement, and which ones fall outside to be dealt with by you in the usual manner.

The tax due to the Inland Revenue for tax year 2007/8 will become part of the IVA. The tax estimated for 2008/9 will have to be paid by you - usually paid into your arrangement monthly and the paid over to the Revenue when due by your Supervisor. As to amounts check with your own Accountant.