IVAs and Self Employment

[Mattybaldy]

Hello guys,

I have been on an IVA for almost two years now and have a question relating to self-employment.

I know from reading this forum and others that a person who is already self-employed is eligible for an IVA, but does anyone know if you can become self-employed AFTER you take on an IVA?

I have been considering becoming a self-employed sole trader, but I don't know if that is allowed under the terms of an IVA. The nature of the business I am considering would not involve any attempt at gaining credit at all, so where do I stand?

Would really appreciate some help as I can't find a definitve answer to this question anywhere.

Thanks,

Matt.

[luluj]

I would imagine that if you are able to demonstrate how you are going to service your IVA to the same extent as you are now, that a change in career is permittable - it is only if the IVA is in doubt of being continued that your IP may question the change.
Put together a business plan and projection sheet of your income and outgoings to prove that you can get the money each month etc etc - good luck.

[MelanieGiles]

There is no problem changing from employment to self-employment during an IVA, providing that you are able to demonstrate that this will have no effect on your ability to continue with your IVA payments. You will therefore need to work at putting together a sound business plan, and convince yourself that you can generate a similar level of income from this source than continuing with your paid employment.

Do make sure that you register with HMRC and take into account that you will need to pay tax on your profits. It is always a good idea to open a savings account to pay in your tax deducted monies so this will be available when it is needed to be paid over.

[Mattybaldy]

Thanks very much for your replies. I had a horrible feeling that I wouldn't be allowed to become a sole trader whilst on an IVA, so I am very relieved.

[David Mond]

But don't forget to discuss this with your Supervisor (IP) before making any such career change. It may also be a term of your Proposal in the conditions.