keeping self employment earnings down

its-hapnin

my OH is self employed and is proposing to work enough hours to pay our household expenses as per our SOA.

he would normally work more than say 45 hours and obviously get more pay but why do this when the money will then go into IPA payments?

does this sound feasable

if so, surely a lot of self employed people would do this? bit confused

curly04

Who is going BR?
Both of you or just one of you?

its-hapnin

just him going BR

MicheH

I think it's all fair to say we would like to avoid an IPA. It's human nature to try to keep what you earn and if you're not going to get to keep what you work for then why bother.. I understand that totally.

I hope any trolls out there just walk on by this thread and see it for something it is... someone thinking aloud, just wondering that's all.

One thing to remember its-hapnin is that any money your OH would earn, only a proportion of it would go towards and IPA so you'd still have a little disposable income. Right now I would love to have a little disposable income, I only need a little bit mre money a month to get to do the things I would like to do, i.e. join a gym, treat myself and the girls to new clothes without having to tweak a budget for it.

It makes complete sense what you're wondering about but in reality some people just like to work, need to work for sanity's sake lol

stevemarsh1976

In some respects having an IPA is a good thing it means you have enough money to pay for essentials and still a little left over. Dont get me wrong its never nice paying your hard earned cash over but then again surley the IPA is less than the debts being written off for the BR.

Im pretty sure there are some that would be envious to be earning enough for an IPA as theres a lot that still struggle post BR.

This isnt a dig but adding a little perspective to it.

its-hapnin

hi M

i know wot some people might think about wot i am asking. and if they were in the position we are in they may be asking the same thing.

he does work really hard as it is

guccigoo

sorry for gatecrashing the thread but with an IPA say if my husband earnt £200 more that month, what percentage would the O R take and would we be allowed to keep the rest?

MicheH

I think this is what i've seen Phil add to posts - I hope it's uptodate, if not it'll give you some sort of idea

Currently the guidance given to official receivers about how much money they should take under an IPA/IPO is that if a bankrupt has more than £100 per month disposable income he/she will be expected to pay a percentage of that under an income payments agreement for three years. If he/she has less than £100 per month disposable income he/she will not be expected to pay anything under an income payments agreement. The percentages work on a sliding scale, according to the amount of disposable income, as follows:
£100 to £240 - 50%
£250 to £340 - 60%
£350 to £490 - 66%
£500 to £600 - 70%



http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm


I've 'spoken' to people on the board who have taken the opportunity to quit work or cut hours after bankruptcy, they've worked practically on their knees to pay off debt, now the debt has gone they get to cut hours or stay at home with family.



Myself its-hapnin, I don't work, i now stay at home with the girls... it's not worth me working just to pay out to an IPA and childcare. I know where you're coming from x

Frank_Cannon

There's no point in your OH busting a gut, working 45+hours a week. If he carries on like that he'll do himself a mischief.
Take the time to enjoy life, spend more time with the kids etc.
I've no idea how much he earns, but if it's less than £20,000 pa, you'll be losing 70p tax credit for every £1 he earns.
Enjoy life a bit.

guccigoo

my husbands salary differs each month due to his job but he has to do the extra hours so one month he could earn an extra £200 or the next month more or less. would he have to report his salary each month to the O R if he had an IPA?

curly04

guccigoo wrote: »

my husbands salary differs each month due to his job but he has to do the extra hours so one month he could earn an extra £200 or the next month more or less. would he have to report his salary each month to the O R if he had an IPA?

I think to start with they ask you for an average of the last 3 months
you could always put on the forms this included a lot of over time but over time is no longer as work has dried up

Curls