Self Employed & IVA

There are a couple of companies that specialise in IVAs for the self-employed. Personally I found it a distinct advantage for several reasons, not least my annual review was every November but I could bat them off (using the last years accounts) until at least January 31st, but I think they left it in the end and only occasionally chased me for that type of thing. I was able to argue that I needed to retain trade credit accounts (these were in my own name as a sole trader, not company). Also I had total control of my earnings so kept myself on the money I'd started the IVA on. In hindsight I should have set up a limited company and paid myself minimum wage as an employee (company with wife as director), at least allowing the company to hold onto any profit that was generated, but you can't win them all.

As far as I know it's perfectly legitimate, but obviously you need someone relatively solvent that you trust completely to be the director and secretary in order to open the bank account.

We did actually go as far as setting the company up and opening the account, with OH as the Director and good old mum as the Company Secretary, but I was looking at a change of career by this time and never actually traded, as I'm now back in the cushy world of gainfull employment (holiday pay, sick pay, christmas bonus, company van!). The set-up fee was about £80 I think

It's more work than being self-employed as you can't juggle money around as you can when you're self-employed and there's a bit more accountancy involved, but you'll pay alot less income tax if you're paid a low wage and only take dividends, but you don't have to take dividends. If you're a sole-trader and have a bumper year without realising at the time, you'll automatically have to pay more into the arrangement, at least if you're technically employed you'll be earning the same money into your household no matter how well the business does.

The only fly in the ointment might have been if the IVA company became aware and viewed the company as an asset my OH owned, but it's not something they have asked about once the arrangement was underway and I'm not sure they could touch it anyway if it hadn't been written in at the start.