Can self employed people do an IVA?

Self employed - IVA requirements are the same

We receive a lot of calls and emails from the public asking; "Can self employed people do an IVA?"

A person is self employed who operates as a sole trader or as part of a partnership or an individual who works for himself/herself.

Self employed workers suffering from debt problems can certainly apply for an IVA for either their personal debts or their business debts. The only point that we must state is there is no point in applying for a self employed IVA the business is viable.

The key to a successful self employed IVA is to show all the creditors that even though you are in debt the business can survive and generate a regular income.

The requirements are exactly the same as if you were employed-

You must have the desire to pay your creditors as much as you can afford a 5 year IVA at the most.
You must be able to make regular IVA monthly contributions.
You must have a viable business to propose a self employed IVA.
Your business must be capable of making profits to prove you can afford to do an IVA
You must keep up to date with the filing of all post-IVA tax and VAT returns
You will need to show your Trading accounts for the last 3 years (if applicable).
Your will need to show your latest tax returns
You will need to provide a cash flow forecast for the next 2-5 years.

Money Advice Direct has a dedicated team advising self employed people on their debt problems. The teams are experts in dealing with HM Revenue and Customs for VAT debts, Corporation Tax debts and other tax debts.

If you can answer 'Yes' to all of the following questions, it will usually mean you are self-employed.

Can you hire someone to do the work for you or engage helpers at your own expense?
Do you risk your own money?
Do you provide the main items of equipment you need to do your job, not just the small tools many employees provide for themselves?
Do you agree to do a job for a fixed price regardless of how long the job may take?
Can you decide what work to do, how and when to do the work and where to provide the services?
Do you regularly work for a number of different people?
Do you have to correct unsatisfactory work in your own time and at your own expense?

If you wish to discuss whether self employed people can do an IVA and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.

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IVA's

The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.

In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]

What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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Can self employed people do an IVA?

Self employed - IVA requirements are the same

The requirements are exactly the same as if you were employed-

If you can answer 'Yes' to all of the following questions, it will usually mean you are self-employed.

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