Notifications
Clear all
Topic starter
01/07/2011 2:11 pm
Hi everyone,
I am new to this forum so im sorry if this has been asked before. I entered into a Trust Deed in April 2010 and everything has been so much less stressful than how things were before! The only problem is that i recently received a letter saying i was due a £414 tax rebate as the wron tax code had been applied for the tax year 2009/10.
I had previously been told by my IP that if i received any payments or money from anywhere then i would be allowed to keep a percentage of the money but that the rest would be put into my estate. So i called my IP this morning to tell them about it and they now tell me that i dont get to keep anything and it all has to be paid over to them for them to pay into my estate. Is this correct? The person i spoke to didnt seem entirely sure and had to check this with someone else.
Im just a bit disappointed as this was obviously something i was due and i overpaid tax and should have been receiving more money from my salary during 2009/10 and yet now i dont get any of it.
Any help would be greatly appreciated!
Louise
01/07/2011 2:25 pm
Hi starrysky and welcome to the trust deed forum.
I'm glad to hear that your trust deed is working well for you.
It's quite common that there is an agreement that someone can keep a percentage of extra earned income. That might include overtime or a bonus for example. The reason is that an incentive to earn more benefits the creditors as well as the person in a trust deed.
Windfalls like a tax refund (or an inheritance or a lottery win for example) are usually a little different. They'd normally have to be paid over to help repay the creditors. This is based on the principle that the trust deed is only there to write off the debt that you cannot afford to repay during the term.
Thank you for raising the issue though as it's probably going to affect a lot of people over the next few months. As we wrote about in our "trust deed blog" on Wednesday this week, five million employed people in the UK are soon to get a letter with either a cheque or a tax demand in it due to mistakes by HMRC in the way they handled tax codings:
(Blog now removed from website)
Sorry this news will not have been what you were hoping for.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
01/07/2011 2:53 pm
Ah i see. Hm okay well at least i know what they are saying is right. Its quite annoying though as i have debts within my family and wanted to repay them from this. Its just going to take a little longer then!
