I used to run my own small business but closed this just before I started my IVA.
There's a chance I could start it up again, parent shave offered small amount of funding I'd need to buy equipment and I have trade lined up.
I would like to know if I can set up a business whilst on an IVA and if so what are the implications, taxes, profits etc.
I assume I would declare everything at the end of each year and profits would be taken against the IVA?
I work full time and we (just) scrape by paying the IVA. I doubt I'd make much money from the business in the first year or two as I'd be paying back the funding given by parents.
You would be expected to keep up with your agreed monthly contributions as per normal, and supply your accounts to your IP to work out if any further funds would be owed.
If you couldn't make the agreed payments to the IVA for 1-2 years because of the change in career, I'm doubtful that your creditors would agree to allow your IVA to continue. It seems like quite a risk from their point of view, unless they were absolutely convinced of the long-term profitability of the business.
Would it be possible to run the business while in full-time employment, or wait until a more secure time in your life when you have a financial buffer?
Hi
Good advice from Liam, there is nothing to stop you starting your business but if you can do this alondside your fulltime job it would be far less risy.
If you make profits and are running the business alongside your fulltime job your IP should allow you to keep at least half of these
Regards
Thank you for the quick responses. I should have made it clearer that I will be staying in full-time employment and running the business in my spare time.
How would the IVA company look on my parents lending me money and me repaying it as and when I could from profits etc?
I have just set up my own business as a self-employed sole trader and it was absolutely fine by my IP.
The only thing I had any trouble with was trying to find public liability insurance, which was an absolute nightmare. You'll have all kinds of trouble trying to get a business bank account as well. I am running my business through my current account at the moment while I try and find a solution to the business account problem.
As for being loaned the money by a family member, my IP was not at all bothered by that either and didn't even ask me how much I had been loaned.
Last edited by Mattybaldy on Sun Sep 05, 2010 2:25 pm, edited 1 time in total.
Cheers for that [:)] All sounds ok, appreciate the bank account problem. I guess a current account will suffice. I already have customers lined up and suppliers are still with me from my previous business so I don't need credit etc. At least not yet
Interesting they didn't care about the money that was borrowed. I'll need to speak with my IP and see what they think. Hopefully it will reflect the advice you've given me here.
I am employed by Suffolk county council at present but am getting made redundant by them in july, I am a bricklayer by trade and have no choice but to go self employed again , have spoken to my IP about this and they said I can keep the redunancy pay off to enable me to keep up with my IVA payments , and I have also got to forecast to them my potential earnings. I would ideally want to have a business account to set up a small building company building home extensions etc, but if I am not able to get a business account I will run it through my existing current account. I did this years ago and the bank sussed out that I was running a business through a current account and made me set up a business account.
Can you advise where you best found the insurance whilst in the iva? Much appreciated
J
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Mattybaldy
Hi Justin,
I have just set up my own business as a self-employed sole trader and it was absolutely fine by my IP.
The only thing I had any trouble with was trying to find public liability insurance, which was an absolute nightmare. You'll have all kinds of trouble trying to get a business bank account as well. I am running my business through my current account at the moment while I try and find a solution to the business account problem.
As for being loaned the money by a family member, my IP was not at all bothered by that either and didn't even ask me how much I had been loaned.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
