Trading under Bankruptcy

alfaloon

Hi ,i am having trouble finding out from the insolvency service how i can run my business ,already have a fulltime job + an IPA agreement ,but make some money from wedding pictures ,i could put all the profit into equipment so they see no money or could pay off some more to creditors from profit made,no one seems to have a clue! ,anyone else been there?

debtinfo

Hi Alfaloon, When working out your IPA they take your net pay. Therefore if you need to buy equipment for the business then that is ok but it must be nessessary for the running of the business. Normally if you trade you will be required to submit accounts every 3 months, you will need to register with HMRC, account for your tax and you must only trade in the names on your bankruptcy order. One final thing is that you must not credit of more than £500 without telling the person that you are bankrupt. This may affect you where people pay in advance for their photos, to get round this people who trade often ask for the payments in installments, ie part before the goods are delivered part afterwards

nervousmother

You will also struggle to get a business bank account.

If you have expensive camera equipment the OR may take interest in it.