Self employed income and IPA's

dogedlydetermined

Hi, my Husband and I, after years of struggle and stress have finally decided the only way forward is to petition for Bankruptcy and are in the process of preparing the figures for our SOA's. We are both in our early 50's and have worked as partners in a business for many years (consultancy so no staff or fixed assets) and we will continue (or re-start) the business once we have sorted out the BR. Our debts are primarily to HMRC and the bank and we won't have any debt associated with the business so that goodwill will remain.

OH has sourced advice from Step Change and on the forums here but I would like to clarify an issue regarding IPA's. Because I am 'dogedly determined' to find a way through this and start over I have accepted a job for 3 days a week to ensure a certain, guaranteed level of personal income. I'll also continue to work with my OH on a self-employed basis. I understand that my job will attract a nil tax code and that the 'tax saving' will be taken towards an IPA. Our other, joint income will fluctuate from month to month (and year to year) so will an IPA be based on a monthly average calculated from our historical accounts? I have no problem in re-paying what we can - as in spite of quite a lot of bad luck I fully accept we must take responsible for the mess we find ourselves in. But, my concern is to try and ensure that our finances going forward are manageable which they won't be if an IPA imposition is 'punative'.

Any advice welcome on the best way to approach the OR with this.

Many thanks

Flyright

Are you aware that a bankruptcy order will result in the business partnership being severed?

dogedlydetermined

Thanks for the response. I knew we would, effectively need to re-start the business (trading under the same name) and re-register for VAT. I don't know if there is anything stopping us trading again as a partnership. The business will be our primary source of income so we need to find some way of trading that is acceptable.