self employed annual review

evenow

hi alll am in iva with grant thornton one term states i must handover 50% of all additional net profits in future does this mean i & e will not be reviewed at end of each year ? im having a good year but working extremely hard ,i dont mind handing over the 50 % but am not prepared to continue to work nuts off if penalised in review

FoggyBrain_2

Best to check with GT. I am just having my proposal drafted. Have a PAYE job as well as part time self employment. Discussed with my IP and have agreed that we do quarterly accounts on self employment and treat it in the same way as bonuses and overtime are treated, i.e. 50/50. Waiting to see the final wording, but my understanding at the moment is that it will not form part of my regular income at review.

The basis of this is that -- if it were to be included as regular income, apart from the fact that it could disappear at any time, I would have no incentive to do the self employed bit and the creditors would only get the agreed dividend and lose out on the "bonus" of extra payments from my self employment.

Does that make sense ??

evenow

yeah it helps ,cheers

Charco_2

I would imagine there will still be an annual review, but you wont be penalised.

Its not back dated!

The figures would be rejigged so that next year's self employed earnings would be more representative... not necessarily the same as this year's but a step closer to bridging the gap. The 50% you keep will still be yours this year, but the extra you earn next year will be less I'd imagine because the base figure they are working on will rise.

(everthing is sort of negotiable)