How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4186
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am a limited company Techwise Direct limited. I have an

Customer Question

I am a limited company Techwise Direct limited.
I have an IVA costing £945 a month to Payplan.
Should this sum be deducted from my profits before corporation
tax is calculated?
And deducted from my self assessment figures?
To reduce self assessment tax?
Also I have exceeded the monthly allowance for spending.
This has been exceeded yearly partly due to the £945 payment.
And of course consequently my self assessment personal tax
has rocketed.
I have been earning £50 to 53000 a year.
Last July 2014 Corp tax £4800
This July 2015 Corp tax £5804
This July 2015 £3200 advance self assessment tax (approx.Exact figure online)
This Jan 2015 Approx £10,000 self assessment tax.
Best Regards
Roy Becker
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello Roy, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

I am sorry, an IVA is merely a means of settling a personal debt and not normally deductible for either Income nor Corporation Tax purposes. However, if the IVA is recovering business expenses which have yet to be passed through your books of account then they can be used to offset tax in the current accounting period in the normal manner.

The IVA payment does not form part of your mothly allowance for spending.

Your accountant's advice is sound.

You might find some of the payments allowable; that I cannot verify without full detail.

I do hope my response has been of some assistance and not rained overmuch on your parade..

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.

Thank you for your excellent support.