Going Self Employed

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nevans06

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Post by nevans06 » Thu Jul 31, 2008 2:15 pm
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Hi to All!

I am soon to be going self employed in a consultancy role. Would I be better off as sole trader or Limited Company as far as my IVA is concerned? I have 2.5 years left on my IVA.

Many Thanks,
Nigel.
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MelanieGiles

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Post by MelanieGiles » Thu Jul 31, 2008 2:31 pm
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Hi there and welcome to the forum

It will make little difference to your IVA, but there may be some minor differences with regard to the amount of tax you will pay and the timing of those tax payments. If you have engaged an accountant, this is probably best discussed with them - as I gather that there may still be some small tax advantage in incorporating the business.
Regards, Melanie Giles, Insolvency Practitioner
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nevans06

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Post by nevans06 » Thu Jul 31, 2008 2:41 pm
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I will get an appointment with an accountant ASAP.

If I am sole trader, does this mean that my IVA company can take as much as they want from the income as a whole? or will there still be a set figure?

A little confused here sorry! [:(]
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MelanieGiles

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Post by MelanieGiles » Thu Jul 31, 2008 6:33 pm
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Your IP will review your trading accounts on a monthly basis to see if you are generating profits sufficient to increase your payments. If this is the case, you can expect to pay 50% of the figure earned in excess of that you declared on your IVA proposal.

Hope this helps.
Regards, Melanie Giles, Insolvency Practitioner
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