I am self employed. Do I qualify

[john.mh]

I am self employed. Do I qualify if I meet the other criteria?

[Martin2011]

Hey John,

Have certainly seen posts on here from people who are self employed and managing IVA's. Melanie has often mentioned that you should seek out an IP who knows the in's and out's for people working for themselves as some of the bigger firms won't be as familiar. I'm sure Melanie or Andy will be along soon to give you some pointers. Best of luck with finding a solution that works for you,

Martin

[Beechy]

Hi John
You can still do an IVA even if you are self employed.
You will have to provide a detailed forecast of you future trading and preferably some account to back you forecast up.
Who are the creditors?




Beechy

[Andrew Graveson]

Hello John,

I'd suggest that you select an IP who specialises in such cases (self-employed) as they are somewhat more complex than some employed cases.

Melanie who posts on this site is one such IP with expertise in this area.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Adam Davies]

Hi
As you are self employed you MUST have a face to face meeting with your IP.
As a matter of interest IVAs were initially designed for the self employed.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

IVAs for self-employed persons are more complex to set up, which is why the majority of the larger "factory" type firms steer clear of them and refer them to others.

Here is where is is useful to choose an IP who is also qualified in accounting and taxation as well, as they perhaps have a more broader view of your business, its potential and opportunities - also they may need to negotiate with HMRC.

You will need to meet with your IP or a senior and experienced member of his/her staff as this is a statutory requirement - but this should not be seen as a chore, but rather the opportunity to find out more about IVAs and other forms of insolvency proceedings to decide the right way forward. The IP will also help you to work out future trading projections to ensure that you can really afford to make ongoing contributions to your creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Beechy]

It is critical that a prospective self employed individual/partnership seek a face to face meeting as many things can be omitted and best advise man not be given if a face to face meeting does not take place with an senior experienced advisor who understands the complex aspects of self employed IVA's. Generally we find HMRC sympathetic to a detailed proposal.


Beechy

[ellie 553]

I have been advised that HMRC are not particularly sympathetic to IVA proposals. I would like to arrange a short term IVA with the hope of a final settlement once the sale of my house / business go through late Jan. However I have been told that it probably not possible due to their attitude towards VAT debts - do you have any info you could pass on as I am dealing with them myself at the moment. I have found them difficult to deal with due to the number of departments & people you need to speak to - any help would be appreciated !

[Adam Davies]

Ellie
If your sale is due to complete in several weeks then an IVA will not be suitable.
Surely HMRC will hang on until then ?
Have you documentation that you could show them that would satisfy them that you can clear your debts once the sale completes ?
Have you exchanged conrtacts ?

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Beechy]

Have you spoken to HMRC to tell them what you are planing and at what stage you are at.

Beechy

[MelanieGiles]

Ellie - are you suggesting that you offer a full and final settlement using the residual sale proceeds of your business sale to fund the offer? If so, then I cannot see why an IVA would not be an option for you providing you were offering a realistic dividend. HMRC have a specialist voluntary arrangement deparment who review and vote upon all IVA proposals, and I personally find them very fair and commercial. I cannot remember having had a rejecting vote from them for a long time, and I do a lot of self-employed cases.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ellie 553]

Thanks for all the replies. To answer - I have told HMRC at every stage at what stage the sale is at. I have sent a copy of the offer letter to them but that is all the documentation I can supply at the moment. They wanted a solicitors undertaking on exchange of contracts to stop distraint proceedings.
I spoke to the local debt management office today, and told them the situation. They seem to think there will be enough time for the sale to go through & said to call back at the end of Jan with an update. I have to say that I have heard this before from HMRC so I am going to be calling them before then, and sending info as I have it.
I would like to have a plan in place if the sale falls through on either the house or business as in my current frame of mind, I do not feel it is likely that both sales will happen with no problems. An IVA based on equity on the sale of the house / income from the business might be a way to continue trading until a sale goes through.
I think we can manage through til March if the house sale goes ahead but depends on HMRC situation

[Beechy]

So things are a clear cut as the end of Jan. There is a way through this but all the detail needs looking at.

Dave Beech