question category: Bankruptcy

What options do i have as a bankrupt contractor

I'm soon to be made bankrupt and currently on PAYE but would like to also do some contracting & free lance work on top on my PAYE employment. I do not want to manage my own tax or be a limited company but free to work on short term projects for any client and be sure my tax and insurance is covered. I have looked at umbrella companies and seems the best way to go for me My current business account will be frozen after bankruptcy but i will be able to keep my personal basic account i currently use which has no over draft or credit facility. What are my options and where is the best place to get advice in my situation?

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Re: What options do i have as a bankrupt contractor

Whilst bankrupt you will need to inform the trustee in bankruptcy of any additional earnings that you receive as this may mean that an Income Payment Agreement is possible, or can be increased. Whether you will be better off working for an umbrella company or doing contracting or free lance work would perhaps be a question that is better placed with an accountant or tax adviser. If you would like to find out if other options may be available, to avoid the bankruptcy, then contacting a free debt adviser may be useful.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.


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