www.iva.co.uk

I am self employed and am considering an iva but do not want to live hand to mouth for the duration.
If I earn any extra money during the term would it have to be declared or could i keep a seperate bank account to have any extra money paid in?

Hi John. Any extra money in the form of bonus payments or overtime is usually dealt with by allowing you to keep the first amount equivalent to 10% of usual salary, then splitting the rest 50/50 -- so you DO get the Lion's Share.

In some agreements it's just a 50 / 50 split.

That all said, being self employed means there might be different provisions (as your income will fluctuate) and it is important that you go with an IP who understands the complexities, like Melanie Giles or McCambridge Duffy.

Hi and welcome

You must declare all income and not keep any undeclared income in another bank account.

Part of the ethos of an IVA is that you pay back as much as you can reasonably afford, it doesn't mean living hand to mouth but it means cutting back and making some sacrifices

Regards

I am also self employed and for my review each year I had to send in my accounts in the form of my tax return.

A lot will depend upon the nature of your self employment and how regularly you get paid etc.

But for me, and I guess many others, your affordability is based on your most recent set of books. This is because income can fluctuate throughout the year.

This usually works out quite well, because any spikes in income get averaged out over the year.

Make sure you choose an IP who is familiar with dealing with self employed cases, and they should be able to advise accordingly based on your own circumstances.

Good luck.

You have had some good advice here John.p

All I can add is to seek advice and make sure your IP is used to dealing with self employed cases.

There is also a statutory duty for a face to face meeting with your IP as you are self employed

It is impossible to determine extra earnings while self employed until the tax return has been submitted and agreed. We do not use the 10% 50/50 rule when self employed for that very reason and any increases follow the annual review and are not back dated.

Bear in ind that you have good months and bad months and you must make provision for any tax and national insurance so any payments offered must be affordable.