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Posted: Mon Feb 29, 2016 1:36 pm
by Adecco
I have been liaising with an IVA practitioner.

Badicslly - I have a limited company through which I contract. The company receives a daily rate for this. It's just a one man company - without me working it would have value other than the company's cash at bank)

I can then extract a salary and dividends should I choose.

The strategy being suggested by my advisor is pay me a relatively small salary from the company (just enough to live on) and go for a full and final IVA based on that salary. (I have a lump sum available to me)
(I could withdraw dividends if I want - but his suggestion as I understand it is to include my salary in the application along with a value on the company)

Is this correct? It sounds incorrect to me.

Posted: Mon Feb 29, 2016 1:51 pm
by lifenoteasy
Sounds a bit iffy because it doesn't seem to take into account any director loan implications.

Posted: Mon Feb 29, 2016 2:08 pm
by Adecco
To clarify - there isn't any director loans involved. I could take dividends also (but with this strategy I only take a salary and submit the F&F IVA based on my Salary and pay out what I can based on cash at bank for company)

Posted: Mon Feb 29, 2016 2:51 pm
by lifenoteasy
Sounds possible but will have a knock on effect on tax.

Additionally if the amount in the Ltd company is "significant" creditors could argue that more could be taken out of the company over a longer period.

Just make you are using a company that specialises in supporting IVA's linked to the self employed etc.

Posted: Tue Mar 01, 2016 4:55 pm
by Lisa Thomas
Depending on the figures you could just offer the lump sum with no additional contributions...

Then depending on the number of creditors you have you may want to reach a direct settlement with them rather than via an IVA.