I have been forced to leave my job but have now got some freelance work for at least 6 months so I will still be able to make my repayments. After 6 months it will probably lead to permanent work. However what shall I do with regards to the freelance status? Is it OK to set up as a sole trader while on an IVA? If not what are my options? Thanks!
Hey caseydr, welcome to the forum. Sorry about your job but good news about the freelance. You will need to inform your IP and as long as it won't affect your ongoing IVA payments it shouldn't be a problem. It's better than no job. Please hang in there as the technical experts will advise you. Good luck. X
It's not a problem in itself, but it will become difficult if you need to get credit.
Talk to your Supervisor as there will probably be a clause in your IVA that requires you to notify him/her of any change in your circumstances. Don't forget also that you will need to register as self-employed with the tax authorities - failure to do so would be a costly mistake!
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Presumably as a freelancer you are just offering your services to an employer so will probably not need to avail of credit in the shorterm in order to commence and continue trading.
As Ian says, keeping on the right side of the taxman is important, and that means setting the right sum of money aside to pay your taxes each month into a separate account so that you have the money available when it is due.
Your IP is likely to want to see a set of trading projections for your new project, to give them comfort that you will be able to continue making your payments into the future. Good luck with your venture, and let's hope it leads to more permanent employment for you in the future.
