Grant 4 with IVA

Aaron1204

sparklep0ny said:

Aaron1204 said:

So what does it mean when it states 
"A new record will not be required in voluntary arrangement cases" ?

It means they won't set up a new file for you (new UTR) which they do with a bankruptcy.

Oh I see! Right. Okay. 

So I won't be entitled to the 4th grant then. That's a big problem but one I will have to overcome. 

I'm annoyed that this wasn't made aware to me by any person at the company who did my IVA, nor the HMRC on the countless phone calls is have made about this very matter. 
I even asked my IVA firm what do I do when I spotted the nothing to return message and they told me nothing, I don't do them whilst in the IVA 😑

MattMattMattUK

Aaron1204 said:

sparklep0ny said:

Aaron1204 said:

So what does it mean when it states 
"A new record will not be required in voluntary arrangement cases" ?

It means they won't set up a new file for you (new UTR) which they do with a bankruptcy.

Oh I see! Right. Okay. 

So I won't be entitled to the 4th grant then. That's a big problem but one I will have to overcome. 

I'm annoyed that this wasn't made aware to me by any person at the company who did my IVA, nor the HMRC on the countless phone calls is have made about this very matter. 
I even asked my IVA firm what do I do when I spotted the nothing to return message and they told me nothing, I don't do them whilst in the IVA 😑

The bigger issue might be, did you have any earnings in 19/20 and/or should you have completed self-assessment (eg had you de-registered)? If you should have completed a tax return you might be in line for both a tax bill and a fine. 

Aaron1204

My earnings were all reported to the IVA guys. And when I tried to submit my self assessment, was greeted with the above. So I literally could not submit my SA. Despite attempting to. 

MattMattMattUK

Aaron1204 said:

My earnings were all reported to the IVA guys. And when I tried to submit my self assessment, was greeted with the above. So I literally could not submit my SA. Despite attempting to. 

I can understand that part, but I think it is important to establish why, eg had you ceased trading in 18/19 so no 19/20 required, or did you earn in 19/20 and so legally, was a return actually required? Had whoever was/is administering your IVA  somehow ballsed it up by telling HMRC you were bankrupt, have they done something else stupid? 

Aaron1204

MattMattMattUK said:

Aaron1204 said:

My earnings were all reported to the IVA guys. And when I tried to submit my self assessment, was greeted with the above. So I literally could not submit my SA. Despite attempting to. 

I can understand that part, but I think it is important to establish why, eg had you ceased trading in 18/19 so no 19/20 required, or did you earn in 19/20 and so legally, was a return actually required? Had whoever was/is administering your IVA  somehow ballsed it up by telling HMRC you were bankrupt, have they done something else stupid? 

Agreed. I called HMRC again today and said I would very much like an answer and to ascertain exactly what is going on. I asked if I should have filed some other way and was told that if it says no return to complete, there is no return to complete. Not sure I completely trust that given the answers on this thread. 

I was earning so I was expecting to file my SA. Had everything ready and then the above happened. 

I guess I just need to keep waiting. Its very frustrating though. 

sheramber

 Did you enter the IVA during 2019/20?

To understand what has happened you need to ask HMRC
1  What has been recorded on your self assessment for 2019/20?  (Your Insolvency Practitioner may have submitted a NIL charge if that is the year of the IVA)
2  Why are no returns required when you are still trading?
3  If the record has been closed why was it closed? 

Aaron1204

sheramber said:

 Did you enter the IVA during 2019/20?

To understand what has happened you need to ask HMRC
1  What has been recorded on your self assessment for 2019/20?  (Your Insolvency Practitioner may have submitted a NIL charge if that is the year of the IVA)
2  Why are no returns required when you are still trading?
3  If the record has been closed why was it closed? 

Hi, thanks for the reply. 

The IVA was started in 2018, I wasn't informed of any change to my self assessment requirements and have continued trading. Hence my attempt to file 19 to 20. 

As for your second question, I honestly don't know, I asked my IVA contact as to why and was simply told that they do it all and take the tax out of my IVA payments that I would need to pay. 

Sorry, I'm not sure which record you mean. 

sheramber

I mean your self assessment record.
It looks like HMRC have closed your self assessment at 2018/19.
Did anybody tell HMRC that you continued trading?

That is the question you need to ask HMRC.
I entered an IVA in 2018/19 but continued to trade. My self assessment states no return required. How do I report my trading income for 2019/20 onwards?

Maybe try the web chat , if you get it open, as from  what I have read they seem to be more "on the ball'.

There is some information here   https://www.iva.org/unpaid-inland-revenue-tax-bill

However, if you are self-employed and normally pay your tax through the self-assessment scheme, your Insolvency Practitioner (IP) will be obligated to collect your tax contributions each month for the remainder of the current financial year, under the terms of your IVA.

Your tax contributions will be added to your normal IVA contributions, with the extra funds being introduced to the IVA for the benefit of all your creditors.

Collecting your tax contributions alongside your IVA contributions in this manner ensures that no new tax liability builds up, after your IVA commences.

At the end of the tax year you will become responsible for paying your tax directly to the taxman, as before, through the self-assessment scheme.