Can I start my own business as I'm being made redundant?

[spazzbecker]

Hi everyone..
This is the situation. I have 4 payments left!!!!! YES ONLY 4
BUT
Being made redundant mid February - really couldn't make this up!

So what happened today is that I put a business proposal towards the sister company that was going to absorb all our past and future customers. I proposed that I would create a company and handle all the customers that would of transferred over.. This would of created a problem for our current customers as the sister company is a competitor in the same industry as our customers are selling in.
(don't want to disclose too much)

Well they only went ahead and approved it in principle - With the line of work I'm in it can be ran from home with zero to very minimum overheads and stock would only have to be purchased as and when required. So now I need to deliver

Here are my questions:
1. My parents are willing to pay for the 4 outstanding payments in full, so I would be presenting this to my ip in the next few days. Should be accepted don't you think?

2. My redundancy payment has been approved already as I have sent all paperwork to them same day I received it. There is no additional funds to be paid. So can the small amount I receive tax free can be used for the new business start up?

3. How do I go about opening up a business account? is it even possible? I'm meeting with accountant in the next couple of days to seek guidance

Any thoughts ,ideas would be appreciated

[kallis3]

Hi,

Not sure how you stand with this one - hopefully someone with more knowledge than me will be along to help.

[Foggy]

You need to discuss this with your IP . Your parents could make advance payments to covert the last IVA installments, but the IVA will still run until it's scheduled end date ( it is too late to call a variation for early closure now|). So ...you would still be bound by the IVA. Redundancy payments are due to be paid into the arrangement, but you are usually allowed to retain 6 months worth of your usual salary. This close to the end the IP might just let it go -- unless you get a generous sum.

Business accounts -- some have had success -- usually it needs a branch visit and a helpful manager to override the computer.

[Lisa Thomas]

I agree with Foggy - best of luck with it.

Nb HMRC might ask you for a security bond if they had a debt in your IVA.