Want to start a business

itsallover

Hi .
I've been lurking for about a month. Great stuff guys!
My story - I've been bankrupt now for almost two months. My house is definitely going to be repossesed and I'm not on any IPAs. At the moment I have a temporary job and worried that if I lose my job I will fall into arrears on my gas, electric etc - not worried about the house as I've resigned to moving on.
I would like to start a small business doing odd jobs but not sure what the effects will be on my BR.
Suppose I make more than my permitted allowance from the OR - does this mean I'll go on an IPA? For instance suppose I will make the following in the business -:
1. Month 1 £1000
2. Month 2 £1400
3. Month 3 £1600
The OR has said I can live on £1200 per month and anything over this has to be shared with creditors. As I earn slightly less than this from my job I'm currently not on an IPA.

Will the OR allow me to re-invest in the business?

itsallover

Anyone?:)
I'm at a loss what to do.

[Deleted User]

Your best option to be sure is probably have a chat with your OR.
FWIW I'm self employed and carried on, my OR has had my spreadsheets at br and again after 3 months, I'm half expecting another soon (6 mths) - these include allowable expenses to continue the business (they're exactly what I'd put in for tax),
I don't know about 'investing' in a business but if it was OK with your OR to start up, you certainly would be expected to run it properly and account for everything - Get yourself on some of the free HRMC starting business courses, I learnt a lot enough to do my own 'books'
I dont' earn enough for an ipa so can't help with that bit
lbm

itsallover

Thanks for that Ibm. I will speak with the OR.

maxmycardagain

let me think..........

if you started S/E now, you wont have any idea of your annual profits till after 1 years trading (oct 2011) by which time you will be "AD", your 1st SA HMRC form wont be due in till jan 2012....

itsallover

Thats right! I can't work on projections so the OR will have to wait til year end. Right?

debtinfo

not really they can just look at your records after 6 months, or what you have been taking home each month, simple

maxmycardagain

As "capital" items are needed to start any business im sure year 1 will yield nil profits

"taking home" is irrelevant whan your van cost £10K................

itsallover

Thanx for the replies guys.

Maxmycardagain,
Very good points. Maybe I should have a list of capital items that the business will require so that I can build a case for reinvesting.

Aaarrrrggghhh..... if only I could speak with the OR- he seems to be unavailable for the second time in a row.

now

maxmycardagain wrote: »

As "capital" items are needed to start any business im sure year 1 will yield nil profits

"taking home" is irrelevant whan your van cost £10K................

Only thing is the OR would ask how you got £10k to buy a van. I think if you are SE you are asked to send in your bank account statment every three months

hopefulfooluk

now wrote: »

Only thing is the OR would ask how you got £10k to buy a van. I think if you are SE you are asked to send in your bank account statment every three months

I was SE and my OR didn't ask to see statements every three months - just at the beginning. I was discharged after 5 and a half months with no IPA. So not necessarily a problem