Hi, I've recently found this site after looking at your sister site IVA.co.uk. My husband and I are currently considering an IVA and are awaiting our proposal to be drawn up but in the meantime we are having serious second thoughts as to whether an IVA is the best route for us due to the fact we are unsure that the payments would be maintainable in the long run. For the purposes of meeting IVA criteria for disposable income we have submitted an extremely tight I&E and I'm worried it won't be realistic long term. Also, should interest rates rise at all, we will have no choice but to fail the IVA and go BR anyway.
So in order to assess our options clearly I have the following questions regarding the nil tax code and IPOs and hope that someone can help me before we make our final decision.
1) In regards to the nil tax code, does this also include National Insurance as well as tax? 2)In BR I think we would be unlikely to have an IPO due to no disposable income if we submit a realistic budget. However is it the case that my husband would likely have one based upon the nil tax code on his salary? 3)If an IPO is soley based upon the NT code (and not DI) how long does it last? Is it just for the period of BR or for 3 years like any other IPO? 4) If an IPO based on my husband's Nil Tax is in place and I get a job in a year or so, would my additional income then increase the NT-only IPO?
I have many other questions but will post these under separate threads!
you are right to review your circumstances before everything is finalised, unfortauntly not every one manages to maintain the IVA and still end up having to declare BR (also some BR petitions could be avoided) but the advice is the same consult a couple of experts and find the one that offers the best options for you
answers to Questions
1) Not include National insurance 2)joint income and joint expenditure 3) based on DI as NT tax code is fort eh remainder of this tax year only 4)unlike IVA , IPO can be reviewde and aletered at regular basis
as your IVA is close to being finalised I would suggest speaking to one of the experts on this forum as well who can look at your whole scenario and offer options
i used Paul and his team at Reviva and would recomend a call
So just to clarify - if we don't have any DI we are unlikely to have an IPO, even though my husband's tax would be coded NT and they would effectively take the tax each month? (i.e. this would not count towards an IPO?)
And am I right in my understanding that the NT tax coding only lasts for the remainder of the tax year in which you are an undischarged BR? After which it then reverts to your usual tax code?
Hi, I've recently found this site
Posted - 30 July 2010 : 13:13:28
