[carsenday]

Right here goes,

I'm currently in a IVA which was started in March of this year. I am self employed and run a small private hire business as a sole trader.

Questions are

1. Can I legally start a private limited company registered with companies house.
2. My partner is in part-tme employment of less than 16 hours per week, can I include her as a director of the company and if yes what would her employment status be and what would the tax liability be.
3. As registered business would it be able to get credit.
4. Would this have any effect on my arrangement with creditors on my IVA

[IP2]

OK, my understanding of this is a tad vague, so I am going to direct you at this site, which I think will help you...

http://www.insolvencyhelpline.co.uk/...ed/iva_faq.php

[James Smith]

I don't deal very much in this area but:

1. I think you can as you are not a bankrupt. Do check with CH however. Simply call them they are helpful people.
2. Yes she can be a director. Her tax liability will depend on any payments made to her. Probably zero salary if she works PT but if she has shares (lots of issues here to get right) she would receive her share of any dividend income.
3. No. If this is your only reason for forming you are wasting your time. The bank will credit check the directors in the first instance.
4. Pass.

As ever with forming a limited company, do make sure this is the right decision well BEFORE formation. Ie talk it through with your accountant. There are lots of tax implications and costs. As a rule of thumb you should be making about £25-30k before the extra hassle/cost makes it worthwhile on the tax saving front but circumstances do vary.

Hope that helps

Regards,