Contract work

[Chris78]

I am currently out of work as a result of redundancy, should I not have anything on the cards soon I'll definitely be considering work as a contractor.

How would this work on my IVA as income will vary because you don't get paid bank holidays / holidays?

[Adam Davies]

Hi
Speak with your IP,I am sure that they will try and agree a way forward.One option could be to increase the term of your IVA to compensate for any holiday or sickness that you may have.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Chris78]

Thanks for the reply but I don't fancy extending my term - I'd be better off getting 'regular' employment.

I meant that on average over a year my net income would not decrease, infact it could increase, I just don't know how an IVA could cope with earnings that go up and down - ie if I had a two week holiday (from work rather than a vacation) my income that month would be halved. I'll speak to my IP.

[ray_a]

Hi Chris

This does look slightly complicated as there are number of ways that you can work.

For instance are you planning to be self employed or running a limited company. Also for limited companies limited company and contracting do have difficult tax rules ie IR35!

This will have a bearing on your IVA.

It also has to be pointed out that the economic situation is deteriorating and contracting might be the only way forward as companies might not want to take on staff as employees!

[JJSIDE]

Hi Chris,

I am a contractor, and I am nearly 3 years into my IVA. My IP allows me to add some 'contingency' to my expenditure for periods of time when I may be out of work. i.e so I can build up a reserve in case of not being able to find a new contract. I have been lucky so far. I had a one year contract, followed by another contract, which so far has lasted nearly 2 years. To reduce the risk, I have also stopped taking some of my income in dividends and all my income is now subject to PAYE/NI so I don't have IR35 hanging over me either. It means my income is reduced by 15/20 % but I can sleep better at night!!

Hope that helps.