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  • FIRST POST
    • Chef1966
    • By Chef1966 14th Sep 17, 2:46 PM
    • 1Posts
    • 0Thanks
    Chef1966
    Self Employed / Limited Company
    • #1
    • 14th Sep 17, 2:46 PM
    Self Employed / Limited Company 14th Sep 17 at 2:46 PM
    I declared myself bankrupt after a business I was involved in went bust 2 years ago and the then the landlord and council came chasing for unpaid rent and business rates this year, which totalled £40,000 +, which I did not want to spend the next 10 years paying off.

    I currently rent a kitchen in a social club and I cook for the members and whatever I take is mine less of course costs. I told the OR that I was earning about £1000 a month and he put an IPA on me for £76 per month, which I am happy to pay.

    What is worrying me is that if my earnings increase I will have to notify him and pay any extra I earn, well this could be £1000 more per month. Alternatively I could take a job as a chef somewhere and earn £1500 a month and then he could take £500. A friend of mine had a printing business which went bust and he went bankrupt due to personal guarantees, so he then got his wife to setup a new limited company and employed him on a minimum wage thereby avoiding an IPA.

    Can I get my wife to setup a limited company to take over the kitchen and employ me as a chef on a small wage to run it and then the profits will be drawn by her. I told the OR I was a self employed chef and did not mention anything about where I worked.
Page 1
  • National Debtline
    • #2
    • 15th Sep 17, 1:19 PM
    • #2
    • 15th Sep 17, 1:19 PM
    Hi Chef1966 and welcome to MSE,


    You must report any changes in your income to the OR and the OR will amend the IPA accordingly. We wouldn't advise you to try and hide any income from an OR as the consequences can be quite serious. The best course of action in a situation like this is to be honest and remember that the IPA is only for 3 years.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • peterkay369
    • By peterkay369 18th Sep 17, 2:24 PM
    • 161 Posts
    • 68 Thanks
    peterkay369
    • #3
    • 18th Sep 17, 2:24 PM
    • #3
    • 18th Sep 17, 2:24 PM
    Can I get my wife to setup a limited company to take over the kitchen and employ me as a chef on a small wage to run it and then the profits will be drawn by her. I told the OR I was a self employed chef and did not mention anything about where I worked.
    Originally posted by Chef1966
    Basically, yes.
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