Individual Voluntary Arrangement (IVA) Reported To TCO (AG)

The Voluntary Arrangement Service (VAS) tells TCO about IVA approvals for the previous week by completing VAS Book 2 - known as the ‘VAS spreadsheet’ (VAS 37/2)

You will need to access the secure folder where the spreadsheet and the Index of approved IVAs (IVA index) are held

Notes:

1. The spreadsheet details both members of the household, if both claimants have set up an IVA. You need to consider each entry separately in order to establish if there is any debt relating to previous claims either as a single person or as part of another household

2. Both claimants in a joint household may have their IVAs approved on different dates. This may result in entries on the spreadsheet that appear to have been duplicated but they must be worked as new entries

• If you are dealing with entries on the spreadsheet, enter the claimant’s details on the IVA worksheet. If there is a partner enter their details on the same worksheet. Enter the IVA date and the tax period, then go to step 4
   
• If you receive a letter from an Insolvency Practitioner (IP) requesting information after the IVA has been approved, go to step 3
   
• If you are dealing with a referral from the Contact Centre, go to step 2

• If they are included and the case has already been worked, go to step 18
   
• If they are included and the case has not been worked, go to step 4
   
• If they are not included, go to step 3

• Contact (This text has been withheld because of exemptions in the Freedom of Information Act 2000)(This text has been withheld because of exemptions in the Freedom of Information Act 2000)VAS and pass the details on to them.
   
• Give VAS the claimant’s details including the IVA approval date, name and address of the IP.

• Enter the claimant’s NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• In the Select Application screen
   
• Check to see if the claimant has been part of another household

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

If there are no tax credits claims for the NINO provided, enter ‘No TC claim’ in the ‘Date of latest FAN re TC debt claimable in IVA’ column and move onto the next entry on the spreadsheet or the next piece of correspondence

• If there are tax credits claims for the NINO provided, has the claimant been part of another household

• Yes, make a note on the IVA Worksheet and then go to step 5
   
• No, go to step 5

Note: If the claimant has been in more than one household then you will need to complete additional IVA worksheets for the household that the claimant had been in. For example, the claimant may have had two different partners in two different households

• Go to the Select Award screen
   
• Check for a final award version (FAN) or Statement of Account (SOA) where the notice has been issued for the previous finalised award year prior to the ‘IVA Date’ shown on the spreadsheet
   
• If no FAN / SOA issued enter ‘no FAN/SOA’ on the VAS spreadsheet in column I and 0 in column J along with a joint or single claim

Note: If the previous tax year has not been finalised yet you must go back to the year before that one. You must select the latest finalised award version or SOA issue date on which an award notice or SOA was issued prior to the IVA date.

Note: If the claimant has submitted more than one claim and there has been no Final Award Notice or SOA issued on the latest claim, you must look at the previous awards and select the latest finalised award or SOA version on which a notice was issued prior to the IVA date.

• If more than one Final Actual Award Notice (Fin Act) or a combination of Fin Act, Final Managed (Fin Man), Final As Actual (Fin As Act) Notices have been issued for the same year in any of the previous award periods, go to step 7

Note: If a FIN EST has been issued following a FIN MAN you need to go back to the previous finalised year to select the latest award version on which an award notice was issued prior to the IVA date

• If only one Final Award Notice or SOA has been issued in any of the previous award periods prior to the IVA date

• Make a note of the date in the Issue Date field and the award period it relates to on the IVA worksheet
   
• Enter the issue date in the ‘Date of latest FAN or SOA re TC debt claimable in IVA’ column on the VAS spreadsheet

Then

• Go to step 10

• If no Final Award Notice or SOA has been sent to the claimant in any of the previous award periods prior to the IVA date

• Enter £0.00 on the spreadsheet
   
• Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Debt Recovery’ category to record the following. Make sure you tick the Retained checkbox after recording the note

‘ OD56 - IVA approved for applicant 1*/ 2*/ both applicants* (*delete as appropriate), no FAN/SOA issued prior to the IVA Date. No debt recorded on VAS spreadsheet Group XX Team XX’

Notes:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

Then

• Move on to the next entry on the spreadsheet or the next piece of correspondence

• You can continue to work the case because the re-finalisation was valid, go to step 7
   
• If you cannot continue to work the case because the re-finalisation was not valid, go to step 8

• Use Function VIEW AWARD
   
• Go to the Select Award screen
   
• Check for the latest final award version that was issued for the previous award year prior to the ‘IVA Date’ shown on the spreadsheet

Note: If there is more than one FAN and at least one FAN is prior to the IVA date, the latest FAN prior to the IVA date should be used.

For example: The claimant’s IVA date is 29/11/2006. There are two FANs on the Select Award screen both legally finalised, but one is dated 30/11/2006 and the other is dated 30/09/2006. In this example you would record 30/09/06 on the spreadsheet

• Make a note of the date in the Issue Date field
   
• Enter the issue date in the ‘Date of latest FAN re TC debt claimable in IVA’ column on the spreadsheet

Then

• Go to step 10

• Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Debt Recovery’ category to record the following. Make sure you tick the Retained checkbox after recording the note

‘ OD75 - IVA Case recovery of the overpayment for 200X-200X (enter all tax years suspended) suspended awaiting further guidance Group XX Team XX’

Notes:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

Then

• Go to step 9

• If you are dealing with a case that you cannot remit due to an EARS enter ‘Suspended’ at column X on the VAS spreadsheet.
   
• Note details of the case on the BF spreadsheet
   
• File the IVA Worksheet in your BF run

Then

• Move on to the next case on the spreadsheet

• Go to the Select Award screen
   
• Click on the latest award period to highlight it
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen
   
• Click on the [Schedule] button. You will be taken to the View Direct Payment Schedule screen
   
• Check the VAS spreadsheet to confirm the IVA date
   
• Add together any amounts in the Amount Recovered column for all payments with a Due Date on or after the IVA date with a status of ‘Paid’ or ‘Recovery Only’. These figures should then be entered onto the IVA worksheet

Then

• Click on the [Postings] button. You will be taken to the View Award Period Postings screen
   
• Using the IVA worksheet add together any amounts that have been ‘set off from WTC or CTC’ on or after the IVA date and any ‘payments in’ received on or after the IVA date and include these with the amount recovered that you calculated in the View Direct Payment Schedule screen
   
• Make a note of the total amount recovered in each year separately on the IVA Worksheet

Notes:

1. If there are no amounts shown in the Recovered from this award field or the Payments In field, no recoveries have been made on that award period and you need to check the earlier award years, including the award year in which the IVA was set up in turn

2. Recovery is always carried out on the earliest outstanding overpayment on an award. When the earliest overpayment is fully recovered, the computer will start to recover on the next earliest award where there is an overpayment. To work out the amounts recovered in each award period you must check each award year in turn to see where the recovery has been made after the IVA date

Then

• Go to step 11

• Go to the Select Award screen
   
• Click on the award period that the finalised award notice or SOA you identified at step 6 was issued for to highlight it
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen
   
• Make a note of any amount shown in the Overpayment Outstanding field

Note: Repeat this action for all awards finalised prior to the IVA date and where a Finalised Award Notice or SOA has been issued prior to the IVA date on a finalised award.
 
Note: Where the claimant has been in more than one household during the period, you must include all the overpayments from joint and single awards that were finalised prior to the IVA date and where a Final Award Notice has been issued prior to the IVA date

Then

• If there is an amount showing in the Adjustments field, go to step 12

Note:An amount showing in the Adjustments field indicates that an overpayment has already been remitted

• If there is no amount showing in the Adjustments field, go to step 13

• Click on the [Postings] button. You will be taken to the View Award Period Postings screen
   
• Click on any manual remissions to highlight them and click on the [OK] button. You will be taken to the View Remission Details screen
   
• Note the remission class that has been used for the manual remission

• If the remission is Class 2, note the amount of the remission and go to step 13
   
• If the remission is Class 4

• Do not include the amount of the remission in the calculation of the overpayment
   
• Go to step 13

• If the remission is Class 5B

• Click on the [Cancel] button
   
• Click on the [Summary] button
   
• Click on the [HH notes] button
   
• Check Household Notes to see if the remission has been done under Class 5B because Class 2 was not available
   
• If it was, note the amount of the remission on the IVA worksheet and go to step 13
   
• If it was not, do not include the amount of the remission in the calculation of the overpayment, go to step 13

• If the remission is Class 10, pass details of the case to your line manager for further investigation before continuing with this action guide
   
• If the remission is Class 13

• Click on the [Cancel] button
   
• Click on the [Summary] button
   
• Click on the [HH Notes] button
   
• Check Household Notes to see if the remission has been done under Class 13 because Class 5B was not available
   
• If it was, do not include the amount of the remission in the calculation of the overpayment. Go to step 13
   
• If it was not, pass details of the case to your line manager for further investigation before continuing with this action guide

• The Outstanding Overpayment amounts for each tax credits award, if any
   
• Any manual remission amounts (Class 2 or Class 5B used instead of Class 2) that you have noted at step 12

And

• The amount recovered since the IVA date that you calculated at step 10

Note: If the claimant has submitted more than one claim, but although a Finalised Award Notice has been issued, there is no overpayment on the claim you identified at step 4, you must look at the previous awards and select the latest finalised award version on which an award notice was issued prior to the IVA date. If no Finalised Award Notice has been sent to the claimant in any of the previous award periods, then no debt should be included on the spreadsheet

Then

• Go to step 14

Notes:

1. In the event that there is no overpayment, enter zero in the ‘TC debt due at IVA approval date i.e. claimable in IVA’ columns
   
2. The overpayment amounts should be recorded separately for CTC and WTC and for each household
   
3. If the amount you are recording on the spreadsheet is an outstanding debt enter ‘D’ next to the appropriate amount. If the amount you are recording has been recovered since the IVA date enter ‘R’ next to the appropriate amount
   
4. If both members of the Household have set up an IVA, enter the full amount of the overpayment for both claimants but you need to provide a year by year breakdown of the overpayment for only the first claimant
   
5. If the overpayment has occurred in a joint household you must enter ‘J’ on the spreadsheet next to the overpayment amount. And if the overpayment has occurred in a single household you must enter ‘S’ on the spreadsheet next to the overpayment amount
   
6. If the case is a complex case, you must contact the European Economic Area Team TCO before recording the overpayment (This text has been withheld because of exemptions in the Freedom of Information Act 2000)(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Then

• If you have recorded an overpayment on the spreadsheet, go to step 15
   
• If you have recorded a zero on the spreadsheet because there is no overpayment, go to step 17

• Go to step 16

If the claim is a joint household claim, are both claimants listed on the spreadsheet as having an IVA

• Yes, you do not need to make a further calculation. The total overpayment should be remitted. Go to step 16
   
• No, you must remit only the Anticipated (%) recorded on the spreadsheet. Use the Insolvency calculator to work out the correct amounts to remit

• When you have completed the Insolvency calculator for all affected tax years, print a copy to retain with the claimant’s records
   
• Go to step 16

Note:Enter the Anticipated (%) from the spreadsheet in the Anticipated Yield (%) field on the calculator without the percentage sign

For example if the Anticipated (%) is shown as 25% on the spreadsheet enter 25 in the Anticipated Yield (%) field

• Cancel that remission

Then

• Remit the amount you have calculated at step 15

If you have not included a manual remission amount in the calculation of the overpayment

• Remit the amount you have calculated at step 15

Follow the guidance in Make Or Cancel A Remission, using remission Class 2

If the claim is

• A single household claim

Or

• A joint household claim and both claimants are included on the spreadsheet

• Remit the total overpayments, including any amounts that have been recovered since the IVA date

• A joint household claim but only one claimant is included on the spreadsheet

• Remit the Anticipated Yield (%) that you have calculated at step 15

• If you are unable to make a remission because of an EARS return to step 8 of this guidance.

Notes:

1. You must remit the appropriate amounts of WTC and CTC overpayment in the correct tax years
    
2. If it is not possible to use Class 2 to make the remission because it requires the full amount of overpayment to be remitted, use Class 5B
    
3. You must complete the Remissions Database for each overpayment you remit and use reason 17 (Insolvency)
    
4. If you have cancelled a remission before remitting the overpayment you have calculated, you must complete the Remissions Revision Database

• Update the spreadsheet with the amount you have remitted and today’s date to show that you have completed the remission

Then

• Go to step 17

‘ OD57 - IVA set up for applicant 1*/2*/both applicants* (*delete as appropriate) on DD/MM/YY, VAS 37/2 completed - All details passed to VAS xxx group xx’

Also, if you have completed a remission

‘ OD74– O/P remitted to prevent further recovery. Award period 200XX -200XX.WTC (£XXXXX.XX) CTC (£XXXXX.XX)’

Then

^^^^^2003 – 2004 Recalculation is required

^^^^^2004 – 2005 Recalculation is required

^^^^^2005 – 2006 Recalculation is required

Notes:

1. If you are making a remission for more than one tax year you will need to enter the appropriate messages for each year

2. Include all relevant award periods and overpayment amounts if you have made a remission for more than one year

3. You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

Then

• Go to step 18

Then

• If you have

• More entries on the VAS spreadsheet to consider, go back to step 4
   
• More correspondence to consider, go back to step 1
   
• More referrals from the Contact Centre, go back to step 2
   
• No more correspondence or entries on the spreadsheet to consider, take no further action