Self Employed / Limited Company

Chef1966

I declared myself bankrupt after a business I was involved in went bust 2 years ago and the then the landlord and council came chasing for unpaid rent and business rates this year, which totalled £40,000 +, which I did not want to spend the next 10 years paying off.

I currently rent a kitchen in a social club and I cook for the members and whatever I take is mine less of course costs. I told the OR that I was earning about £1000 a month and he put an IPA on me for £76 per month, which I am happy to pay.

What is worrying me is that if my earnings increase I will have to notify him and pay any extra I earn, well this could be £1000 more per month. Alternatively I could take a job as a chef somewhere and earn £1500 a month and then he could take £500. A friend of mine had a printing business which went bust and he went bankrupt due to personal guarantees, so he then got his wife to setup a new limited company and employed him on a minimum wage thereby avoiding an IPA.

Can I get my wife to setup a limited company to take over the kitchen and employ me as a chef on a small wage to run it and then the profits will be drawn by her. I told the OR I was a self employed chef and did not mention anything about where I worked.

National_Debtline

Hi Chef1966 and welcome to MSE,


You must report any changes in your income to the OR and the OR will amend the IPA accordingly. We wouldn't advise you to try and hide any income from an OR as the consequences can be quite serious. The best course of action in a situation like this is to be honest and remember that the IPA is only for 3 years.


Laura
@natdebtline

peterkay369

Chef1966 wrote: »

Can I get my wife to setup a limited company to take over the kitchen and employ me as a chef on a small wage to run it and then the profits will be drawn by her. I told the OR I was a self employed chef and did not mention anything about where I worked.

Basically, yes.