Thoughts on this please is BN66 / Section 58 / IVA

[DonkeyRhubarb]

DR - I did notify the IP before going into it about the outstnading legal challenge (1). I will look into whether HMRC actually voted in 2009 (2)

(1) In which case, it makes me wonder whether you got good advice from the IP to enter the IVA.

(2) If HMRC voted yes to the IVA then you might have something to go on.

Another thing which may have a bearing is whether you had Closure Notices for BN66, amending your self-assessment, before HMRC were asked to vote on the IVA.

There is a lot to consider here and, as I said previously, it may be worth seeking independent advice (not from the IP).

[doublebubble]

. You can´t settle up without HMRC´s acceptance even if you dispute the amount.

Good luck.

This is the dilemma Even if I carried on paying the IVA as it stands it appears that at the end it wont be signed off anyway because HMRC will still dispute I owe them +£100k

DR - I did notify the IP before going into it about the outstnading legal challenge. I will look into whether HMRC actually voted in 2009

[DonkeyRhubarb]

Did you make the IP aware of the potential £100k BN66 liability at the time you entered the IVA?

I think it's critical that you find out if HMRC agreed to the IVA.

[BlasterBates]

My understanding of the problem is as follows.

You business became insolvent and in those debts you owed HMRC 1500 pounds. You were with Montpelier.

Now you have a chance to settle your debts but HMRC are claiming you owe 100 grand because your tax tax return wasn´t "correct".

Obviously you need legal advice but my understanding is if you want to settle you have to offer HMRC a sufficient amount that they´d accept or you wait until the Montpelier thing has played out completely. That isn´t to say you need to offer HMRC 100 grand but it would have enough for them to accept given the alternative is nothing. You can´t settle up without HMRC´s acceptance even if you dispute the amount.

Good luck.

[doublebubble]

I only have a basic understanding of IVA but a few questions:

1) Did HMRC agree to the terms of the IVA in Sept 2009?

2) Was the total amount agreed by all parties, including HMRC, as £49.5k (£32k already paid + £17.5k outstanding)?

3) The £1500 - is that what's showing on the IVA as being owed to HMRC?

I'm surprised your IP doesn't know what to do in this situation. It might be worth getting another professional opinion.

Btw, I presume you are aware of the BN66/S58 thread? It might be worth cross posting your situation there as a lot of people have looked into IVA/Bankruptcy.
http://forums.contractoruk.com/accou...008-a-299.html

Firstly once again many thanks for the replies; I will try and answer them all

northernladuk - I used the rate drop by year as when applying for the IVa they dealt more in annual salary however it was a £120 a day drop. This was a market drop for me. tbh I should apologise becasue me mentioning the figures in the IVA are somewhat irrelevant. The point of the thread was the fact I entered the IVA with a figure of £1,500 against the HMRC but now I am trying to settle it, the +£100k figure has been mentioned.

cojak - I am one of the many contractors with Montpelier so they are refuting HMRC claims. This is the problem though. I want to end my IVA now and move on (BN66 decision aside) however this figure is preventing me from doing so.

DR - 1) I am trying to find this out. I thought it was agreed however apparently it only needs 75% of votes to go your way to be agreed and that includes anyone that doesnt reply. Therefore it is possible HMRC never voted at the time

2) The £32k is what I have already paid. The £17.k is my offer for final settlement. My IVA is 56p in the £ and when initially discussed the offer I put in should be considered a good one

3) Yes the £1,500 is what is on the IVA

I nearly put this post in that section but wasnt 100% sure so created new thread

I'll post it

thanks

[DonkeyRhubarb]

I only have a basic understanding of IVA but a few questions:

1) Did HMRC agree to the terms of the IVA in Sept 2009?

2) Was the total amount agreed by all parties, including HMRC, as £49.5k (£32k already paid + £17.5k outstanding)?

3) The £1500 - is that what's showing on the IVA as being owed to HMRC?

I'm surprised your IP doesn't know what to do in this situation. It might be worth getting another professional opinion.

Btw, I presume you are aware of the BN66/S58 thread? It might be worth cross posting your situation there as a lot of people have looked into IVA/Bankruptcy.
http://forums.contractoruk.com/accou...008-a-299.html

[cojak]

Why are you counting the rate drop by year when contracts are generally by day or hourly? You are talking around £100 a day. If it dropped this much why did you stay for a year? Was this a market drop or just the contract you were on or something?

I presume there is some mitigating circumstances here we are not understanding as the numbers don't seem to add up.

I don't think that's the point really NLUK. We can't help with this as we don't have the facts and more importantly we are not tax advisors.

Were you in a scheme to account for the £98K gap? The BN66 people went back to their scheme providers for help refuting HMRC claims. Can't you do the same?

[northernladuk]

Got an interesting situation that I would welcome any thoughts on;

In September 2009 I went into a Debt Management Programme (mainly becasue my contract rate dropped £25k a year)
I pay over a £1,000 a month into the scheme and currently have paid £32k over the last 2.5 years

Due to struggling to make this payments I made a "Proposal for Final Settlement" (a friend offered to pay it) A further £17.5k

This was all looking good until HMRC have challenged this because on my IVA it says £1,500 and they say its +£100k

My questions is: 1.) How can they ask for the +£100k when its not 100% legally decided
2.) If they can they ask for this amount now why wasnt it mentioned in 2009 when the IVA was agreed

The problem is this is holding things up and even my IP currently has no idea what to do. They are ringing HMRC today

thanks in advance

Why are you counting the rate drop by year when contracts are generally by day or hourly? You are talking around £100 a day. If it dropped this much why did you stay for a year? Was this a market drop or just the contract you were on or something?

I presume there is some mitigating circumstances here we are not understanding as the numbers don't seem to add up.

[doublebubble]

The HMRC can say you owe anything they want, it is upto you to contest this and until there is a final judgement in your favour they will continue to say you owe the full amount.

This is my problem. If they stick to it then even if I carried on paying the IVA for the next 2.5 years they wouldnt sign it off until their requested full amount is paid. This is still being challenged, has been going on years and potentialy years to come
I'm stuck in a catch22 position

Wondered if anyone has come across it or got any thoughts on it. thanks for replies so far

[SimonMac]

The HMRC can say you owe anything they want, it is upto you to contest this and until there is a final judgement in your favour they will continue to say you owe the full amount.

[SimonMac]

Insolvency Practitioner?

WHS

[stek]

Thoughts on this please is BN66 / Section 58 / IVA

Insolvency Practitioner?

[cojak]

Hi DB. What does IP mean in this instance?

[doublebubble]

Got an interesting situation that I would welcome any thoughts on;

In September 2009 I went into a Debt Management Programme (mainly becasue my contract rate dropped £25k a year)
I pay over a £1,000 a month into the scheme and currently have paid £32k over the last 2.5 years

Due to struggling to make this payments I made a "Proposal for Final Settlement" (a friend offered to pay it) A further £17.5k

This was all looking good until HMRC have challenged this because on my IVA it says £1,500 and they say its +£100k

My questions is: 1.) How can they ask for the +£100k when its not 100% legally decided
2.) If they can they ask for this amount now why wasnt it mentioned in 2009 when the IVA was agreed

The problem is this is holding things up and even my IP currently has no idea what to do. They are ringing HMRC today

thanks in advance