Posted: Tue Jul 22, 2008 6:20 am
I am in the process of starting an IVA, am i allowed to become self employed?
Yes, you are, although if this happens after you have entered into your IVA, then your initial budgeted contributions will have been set at a level consistent with your earnings from paid employment. If it happens before you enter into the IVA then the IP will expect to see your business plan indicating how much you think you will earn from the business, which will be used to determine the monthly payment level.
You will need to make sure that if your self-employed business is one where it can take a while to get paid that you have enough to live on in the meantime.
Also, every year your earnings would be reviewed to determine whether your level of contributions should increase. You will have to show your IP accounts prepared for your self-employed business so that this review can be undertaken.
Don't forget that as a self-employed person you will be wholly responsible for settling your tax liability, you will therefore have to set aside sufficient money from your earnings to cover this.