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peterl
Starting Member
4 Posts |
 Posted - 11 March 2009 : 21:32:03
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| can child benefit and tax credits be taken as a part of your income towards br |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 22:07:53
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Hi
child benefit must be declared but is not included as income in calculating contributions to an IPA.
Tax credits are included as income.
John White
England Jackman & Spacey |
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broke100
Junior Member
173 Posts |
Posted - 12 March 2009 : 16:51:37
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| It depends how you look at the big picture. Both my wife and I went BR and both have IPA's even though all income and expenditure comes from the same pot. The only reason they were able to get a decent IPA from my wife was by including the child benefit figure with her wages. When we questioned this we were told that it was based on what we had already claimed for the kids on our I&E for example clothes, food etc etc. If we did not agree then these agreed figures would have been ammended and we would have been no better off - in fact we would probably have been worse off. |
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John
New Member
United Kingdom
73 Posts |
Posted - 12 March 2009 : 21:30:01
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Hi
are you sure?
The fact is that child benefit cannot be considered income for the purposes of calculating an IPA.
If you were under threat that other expenditure claims would be looked at more closely then clearly a decision had to be made to fight on or accept the proposal. Most people understandably accept the proposal for fear of upsetting the apple cart as it were and making matters worse in what is already a stressful situation.
The various expenditures which can be claimed in bankruptcy, whilst not widely publicised, can be researched and established as many on the forum will know.
Likewise the sum claimable for each expenditure is dictated either by the number of people in the household, their personal and provable position and by fact. This means that one can be reasonably confident of whether or not the OR is trying for an IPA where, if it went to court, it could well be successfully defended. Often when one stands one's ground it is the examiner that retracts the proposal as the OR will not look kindly on him / her if they take the matter before the court and the proposal is thrown out as this is money wasted when court costs are incurred.
I have seen many cases of an IPA proposal being withdrawn when a bankrupt stands their ground, I have seen a few cases where it goes to court and is thrown out by the Judge.
It happens of course but I have yet to personally see the court find in favour of the examiners claim provided the correct research has been carried out by the bankrupt and or their representative in advance.
John White
England Jackman & Spacey |
Edited by - John on 12 March 2009 21:34:49 |
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broke100
Junior Member
173 Posts |
Posted - 13 March 2009 : 08:42:42
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| As is evident on this forum as well as others there seems to be no set pattern around the country to what the OR offices may allow or disallow. Without exposing my case, in reply to your response I will just say that in our agreed IPA we where fortuanate enough to secure payments which I know from reading these forums are often denied by the OR for example pet insurance, college fees etc etc. If we argued the child benefit case then these and other figures would have been ammended to such a level that we would still have been liable to pay an IPA. Therefore we accepted the fact that the child benefit payments had been indirectly swallowed up by food, clothing, college fees, school trips etc which is why you receive child benefit in the first place. Many people may contest this and win on the day but there is nothing to stop the OR recalculating the figures which in our case would have left us worse off. |
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child benefit and tax credits
