I am 3 years into an IVA with 3 years to go .
I am currently unemployed and on a payment break because of this .
I have found a possible job but it requires me to become self employed . I have always been employed so this in itself will be a strange transition .
But what would an IP think about me doing this as I have no possible way of saying what my earnings would be as I simply would not know . How would a set figure for repayments be worked out ?
Just trying to cover my bases here as it is all new to me .
I would imagine that your IP would be pretty supportive, if this was enabling you to earn an income again, but you will need to send them some trading forecasts so they can review matters with you. What sort of business are you going to be going into - and would an accountant be able to help you to project your future profitability?
Following on from Mel's advice, I've got to say that an accountant is an absolute must if you go self-employed. You will learn about whole new areas where you can gain tax relief etc.
A decent accountant should also be able to advise on the most 'tax efficient' way of earning your money, eg: comparing PAYE / 'sole trader' through this company, vs setting yourself up as a limited company (as I have done).
Another option is trading via an 'umbrella company' which is common with agency work, and relatively easy to administer on your part.
All stuff you need to consider very carefully.
All accountants will have an initial meeting with you for free, and will run through everything with you.
Best of luck.
Last edited by UpToMyNeckInIt on Sat Oct 05, 2013 9:55 am, edited 1 time in total.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Many thanks both for your input .
I hadn't considered an accountant at this stage but it is a good point .
I also like the idea of getting some sort of forecast sorted out . This I may be able to do next week as I am having a meeting with the employer so will get a better idea of money that can be earned .
The job is a driving job and it is paid on the amount of jobs completed so I will need to find out how many jobs can realistically be completed each week .
We have looked into similar work in our area for hubby ....for us the figures didn't stack up compared to the hours you had to be out there driving and delivering ..... But different areas, different circs might bring better opportunities ... Good luck and hope it works out for you.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I have several clients who operated similar businesses, and as luluj says it can be quite tough. The reasons for your employer wanting you to do this, are probably to put all risk in your hands - especially if there is insufficient work to keep everyone busy, and of course you will have to fund the cost of running the vehicle. You will also have to fund all costs of the operation before getting paid, so make sure your inward capital requirements are fully worked out.
If this is going to be your only source of work, do be careful as HMTC may view you as an employee in any case, which could leave you and the employer with additional tax debts into the future.
I perhaps should expand on the job itself . It is what is known as trade plating . I get to base and pick up customers car which I deliver wherever it may be , then onto next garage to do the same (all worked out first by company and 90% local one to the other ). This goes on all day until last job , which is taken home by myself ready to start again the next day . Fuel , mobile , pda uniform all paid for by company as is the petrol from job to job .
I will know more tomorrow after talking to them .
Thanks all .
I am free to work any days I please so am free to work elsewhere .
Myself I am with you regarding being an employee as I see it as an employed position myself . The only thing I can see is the fact they might have no work on any given day/s weeks , although they say the have never had this happen . What they say and what they do are probably 2 totally different things in practice as they have non of the risk .
I think I will probably let this pass for now and keep looking , I have this to fall back on if nothing else comes up in the meantime .