Not sure if this has been asked before, cant find anything on the forum search. I am seroiusly deciding to become a full time IT contractor as the market is now thriving again and should be for the forseeable future.
As some of you may know I am a year into my IVA, but the best way for me to get decent contracts is to trade under a limited company. Am I able to form a company whilst in an IVA? If so how will it effect my IVA?
I plan to pay myself a set salary from my company and not take any dividends, is this possible?
There is nothing unusual in what you are proposing and many IT contractors can only source work if they have a limited company.
You could operate under an umbrella company and while this is easy it is also more expensive than running the company yourself.
Irrespective of what you do your IP should be able to advise but additional income would be treated in the normal way. While it is fine to pay yourself a salary, you would be expected to draw dividends should this be possible as your IP would not sanction retained profits building up in the limited company until after the IVA is over.
I cannot see a problem with this at all - but make sure that Table A of the Articles of Association does not preclude you from acting as a director if your in an IVA. You can amend this at the time the company is incorporated.
