IPA and self-empoylment

Prince_Derek

Hi,

I'm currently in the first year of my IPA, but I'm about to lose my job and I'm considering self-employment.

How does it work with an IPA and self-employment? My income might veer between feast and famine so how does the OR work anything out?

Thanks in advance.

JMV

I've just had my interview and was assessed as having no excess income - this is based partly on my telling the OR that I can only realistically take out £**** per month, and explaining that I had checked this by looking at 12 months of bank statements and averaging out the amount I had taken out each month...

I had to submit my accounts for the last 2 years so I assume she will look at these along with my bank statements...

Re IPA - she told me that I wouldn't be paying one but that I needed to submit my accounts every 6 months (so in May and then November 2011)...presumably she will assess me again and put an IPA in place if appropriate...

Though I am by no means an expert - just talking from my own experience of the process for self-employed, I think it is most likely that you will need to submit some accounts and then be assessed on that...it's not what you take out of the business but more your profit (as a sole trader)...

Oh, I also asked what kind of things they would look at in terms of my business spending, and whether my every pruchase would be scrutinised...she said "No, it's more that if you are spending lots on stock but not selling it, that might raise eyebrows"...

I've rambled a bit, but hopefully some of the above is helpful

Prince_Derek

Thanks for that - very helpful.