Employed to self employed

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lee603
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by lee603 » Sun Aug 26, 2018 9:36 am
If I start a IVA while employed but then go self employed what will happen?
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Foggy
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by Foggy » Sun Aug 26, 2018 10:18 am
lee603 wrote:
If I start a IVA while employed but then go self employed what will happen?


Your IP can do another I&E based on projected earnings. If there is insufficient to service the IVA it will fail. If you can continue with the agreed payments it will endure. But, going forward, your IP will need to take a closer interest in your earnings, as they fluctuate, to capture any extra income into the IVA.
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UpToMyNeckInIt
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by UpToMyNeckInIt » Sun Aug 26, 2018 12:45 pm
I was self employed throughout my IVA, and, because your income may now fluctuate, you may find that your reviews are calculated based on your most recent annual accounts. If you have a good accountant, these may be able to be, (legally of course) presented in such a way as to disguise any significant increase in net income, so as to minimise the likelihood of increased IVA repayments.
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lee603
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by lee603 » Sun Aug 26, 2018 12:52 pm
UpToMyNeckInIt wrote:
I was self employed throughout my IVA, and, because your income may now fluctuate, you may find that your reviews are calculated based on your most recent annual accounts. If you have a good accountant, these may be able to be, (legally of course) presented in such a way as to disguise any significant increase in net income, so as to minimise the likelihood of increased IVA repayments.

Nice one cheers for that response mate
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watzki
Posts: 353
by watzki » Mon Aug 27, 2018 1:51 pm
UpToMyNeckInIt wrote:
I was self employed throughout my IVA, and, because your income may now fluctuate, you may find that your reviews are calculated based on your most recent annual accounts. If you have a good accountant, these may be able to be, (legally of course) presented in such a way as to disguise any significant increase in net income, so as to minimise the likelihood of increased IVA repayments.

Yes a good accountant can save you hundreds in payments.
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