I am self employed and my income varies a lot. What figures will I need to produce to the IP ? My profit has increased a lot in the last 3 months, but I cant guarantee it will continue. Should I put in a conservative figure of income or will it strictly be based on the last 3 months? Over a full previous year it was a lot poorer but I feel I can maintain a reasonable profit level, which when added to my paid salaried permanant income, will provide enough income to run an iva.
Hi Chris and welcome to the Forum.
Everyone knows that income fluctuates for the self employed and your IP will discuss projections for the full year and not the last three months. No one works 52 weeks of the year and other factors such as weather, Christmas etc have a bearing on earnings.
You will need to make allowance for future HMRC liabilities but all arrears and the liability for the current year are included in the IVA. This allows you to start with a clean slate and originally IVAs were designed for the self employed.