www.iva.co.uk

My husband is a sole trader and has finally admitted we have a problem. We have an appointment to see an IP beginning of Dec. I have read so many articles about IVAs but I can't find much about being self employed. how do they come about a monthly amount to pay as pay is different every month.

If you decide to use the services of this particular IP after your initial meeting, he / she will explain precisely what is required from your husband.

They would look at previous Accounts or Tax Returns and from this and with your husband's assistance a cash flow forecast would be produced.

This will basically be a month by month projection of anticipated earnings and expenditure over a 12 month period. This information needs to be as accurate as possible and so ideally the books and records maintained by your husband will be as up to date as they can be when this projection is made as the information in those provides the basis of the projections.

After deducting the expenses incurred in the month, including drawings, there should be a surplus left over and it would be this amount that is the monthly contribution. It may not be the same figure month in month out but over a 12 month period he would be expected to pay over the equivalent of that year's surplus.

The process is repeated at each anniversary of the arrangement.

Tell it like it is.

Don't forget that some of that surplus income will b needed to pay tax!

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

Cybus...Am i not right in thinking that as a sole trader your expenses are deducted then thats it! Your drawings are basically your profit.. whatever your profit is for the year is your income and thats what the IVA is based on.

Correct - after making allowance for taxes.

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