Self Employed IVA Help & Advice

At PennyPlan, we support people looking for a self employed IVA. We’ll explain how it works and what to expect so you can get your finances back on track.

*An IVA may not be suitable in all circumstances. Fees may apply.
Your credit rating may be affected if you opt for a debt solution.

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Get information today on your available options

How an IVA Works When You’re Self Employed

When you’re self employed, income can fluctuate from month to month. Tax bills tend to be in larger amounts, and business costs are combined with personal expenses. That can make debt much harder to manage.

Self Employed IVA’s can support this. Rather than assuming a fixed income, it looks at how you earn over time and what you can realistically afford with cashflow forecasting, so payments are set at a level that works for you.

If you’re still trading, the IVA can be structured to support that. The aim is to deal with your debts while giving you the space to keep working.

At PennyPlan, our advisors support self employed clients every day. We’ll explain how an IVA could work in your situation, talk through the alternatives, and help you decide on a way forward.

As seen on:

We Help With Most Debts!

*Mortgage debt can be included if you no longer own the property in question.

Example Of An IVA

UNSECURED DEBTS

Your Monthly Repayments:

Find out for FREE what debt help is available to you

Subject to creditor acceptance. Payment subject to individual circumstances.
Credit Rating may be affected. Fees apply, subject to individuals circumstances.

Reasons To Choose PennyPlan

Is a Self Employed IVA Right for You?

A self employed IVA can be a helpful option in some situations, but it won’t suit everyone. It depends on things like how stable your income is, the level of your debts, and whether your work is likely to continue.

Some people use an IVA to bring multiple debts together while continuing to trade. Others may find a different type of debt solution is more appropriate, particularly if their income is uncertain or debts are lower.

We’ll listen to your situation and talk through what options are available, helping you find an approach that feels manageable and realistic for you.

What Debts Can a Self Employed IVA Help With?

A self employed IVA can bring different types of debt together into one structured plan, depending on how they’re set up and where the responsibility sits. This helps create a clearer way forward when personal and business finances overlap.

It may help with:

HMRC tax arrears, including self assessment and VAT
Bank loans and overdrafts
Personal guarantee debt linked to business borrowing
Supplier and trade debts
Personal credit cards or loans alongside business debt
Sole trader and limited company director situations

If you are unsure if a debt can be included in your IVA, our advisors will be more than happy to help.

Self Employed Repayment Plan Options

Understanding how to deal with debt is an important step towards getting things back on track. We will explain your options, so you can focus on easing the pressure caused by arrears and find a clear, manageable way forward.

IVA

Individual Voluntary Arrangement

An IVA consolidates debts into one affordable plan, with a portion of your utility debt potentially written off.

DMP

Debt Management Plan

A repayment plan that combines debts into one monthly payment. Interest can be reduced or frozen, helping ease financial pressure.

DRO

Debt Relief Order

A debt reduction programme for those on low income. Certain debts can be cleared, with no ongoing payments required during the DRO.

Find Out For FREE What Debt Help Is Available To You

Get Help With Self Employed Debt Today

We’ve helped people across the UK take control of their debts and get their lives back on track. Our trained advisers will assess your individual situation and guide you towards the best way to manage and resolve your finances.

Do I Qualify
For an IVA?

100% FREE ADVICE

Get information today on your available options

Ready to Explore Your Self Employed IVA Options?

If you’re self-employed and dealing with debt, it can be hard to know what step to take next. Tax bills, business costs, and personal commitments can overlap, making things feel unclear.

Our advisors will take the time to understand how you earn, what debts you’re dealing with, and what support could make sense for you. We’ll explain your options clearly, answer your questions, and help you decide on a way forward that feels manageable.

We’re here to help you explore your next steps – talk to us today.

Can I Own a Business With an IVA?

Yes, it’s possible to own and run a business while you’re in an IVA. Many people continue trading during their IVA, particularly if they’re self employed or run a small business.

What matters is that your income is sustainable and your IVA payments are affordable. Your Insolvency Practitioner will look at how the business operates, how you’re paid, and whether continuing to trade is realistic alongside the IVA.

There may be some restrictions, and you’ll usually need to keep to the terms of your IVA, including reporting changes in income.

Tackle Your Debt And Your Mental Health In One Place

Our team are committed to getting your finances and well-being back in top condition

Apply for our eligibility check

Find out if you match the minimum criteria we require to enter you into one of our IVA plans

Speak to our debt specialists

Speak to our friendly debt specialists, who will explain all the options available to you.

Choose your debt solution

Now you have all the options available, you can make an informed decision that is right for you and your family.

Do I Qualify
For an IVA?

What Our Customers Say About Us

Maria

3 days ago

PennyPlan were extremely professional and genuinely caring, I am very happy that I made the call and now have a plan in place and peace of mind. From the first contact to the signing of the agreement it was straight forward and simple plus the staff really are exceptional in the way they listen and understand’ I couldn’t have asked for a better company.

Emily

4 days ago

For over a decade I have kept my money worries to my self away from friends and family one phone call with Leah and I had laid it all bare without a second thought nothing shocked her and nothing wasn’t sortable I’m forever grateful I stumbled across this company and no longer have to worry about money on my own.  Highly recommend!!

Daniel

4 days ago

PennyPlan offered insightful, professional and empathetic support throughout my insolvency. Declan in particular was friendly, personable and knowledgeable, and a massive help throughout the process. They offer a no pressure service and allow you to make the best decision for yourself. I highly recommend these guys for anyone struggling with debt.

Mark

1 week ago

I was hesitant in applying for an IVA, But my mind was put at ease on the first call. The whole process was explained to me with complete care and understanding and I didn’t feel judged at all. Since being accepted for the IVA my mental health has improved so much and I now don’t worry about how I am going to put food on the table each week.

Self Employed IVA FAQ’s

What happens if my income changes during an IVA?

If your income goes up or down, this can usually be reviewed as part of your IVA. Self employed income is assessed differently to a fixed salary, and changes are taken into account during reviews.

The aim is to keep payments fair and manageable, rather than locking you into figures that no longer reflect your situation.

Can personal guarantee debt be included in a self employed IVA?

Personal guarantee debt can often be included, as it’s usually your personal responsibility rather than the company’s.

An advisor will look at how the guarantee works and whether the debt qualifies. We’ll explain what this means for your situation and how it fits into the wider plan.

What if an IVA isn’t right for me?

An IVA isn’t the right solution for everyone. Depending on your income, debts, and circumstances, another option may be more suitable like a DRO or DMP.

Can I get an IVA if I’m self employed?

Yes, it’s possible to get an IVA if you’re self employed. IVAs are available to sole traders and limited company directors, as long as you have qualifying unsecured debts and enough income to make regular payments.

Your income doesn’t need to be the same every month, but it does need to be sustainable. An advisor will look at your situation in detail before recommending whether an IVA is suitable.

Does a self employed IVA include HMRC tax debt?

In many instances, yes. HMRC debts such as self assessment arrears and VAT can often be included in a self employed IVA. Whether they can be included depends on your circumstances and how the debt has built up.

Individual voluntary arrangements are an excellent way for UK residents to consolidate their personal debts (and personally guaranteed business debts) while protecting their assets.

Self-employment has its challenges, from seasonal incomes to general income loss from lost contracts, which is why you need to seek financial assistance.

That may sound appealing to you, but how easy is this process for business owners? And how does it affect self-employment?

If you’ve been pondering those questions, then this article is for you.

We’ll cover the details of a self-employed IVA, from eligibility to how the process differs from IVAs for the employed.

From sole trader tradesmen to directors of corporate businesses considering an IVA, we’ll cover everything you need to know.

Self-Employed IVAs – What are they?

Self-employed IVAs, as mentioned in the name, are uniquely for the self-employed, and therefore, the process from assessing eligibility to the reviewing stage is designed to ensure an IVA is the correct debt solution for your personal circumstances.

Differences between self-employed IVAs and standard IVAs

Although similar to a traditional individual voluntary arrangement, IVAs for self-employed individuals do have some unique differences and considerations.

Business Continuity

In a standard IVA, business continuation does not need to be considered. However, self-employed IVAs are specifically structured so that your business can continue to trade while addressing debt problems.

This means taking into account things that would not usually be considered, including;

Maintaining relationships with key suppliers
Keeping necessary assets and equipment that you require to carry out services
Managing your business bank account

A self-employed IVA is designed to provide sufficient financial flexibility to maintain the business without constraints that ultimately hinder its performance and exacerbate your financial situation.

After all, your business is your primary source of income, and it will allow you to maintain your IVA payments.

During their review process, our IVA team will consider all the above elements to ensure the solution is tailored precisely to your circumstances.

Supporting Documentation

For traditional IVAs, your documentation mainly focuses on your personal finances. This typically includes documents such as your monthly payslips and bank statements, which provide a snapshot of your regular income and outgoings.

IVAs for self-employed people require slightly different documentation due to the nature of your work.

Instead of payslips, you’ll usually provide business accounts and self-assessment tax returns showing how your business performs.

The IVA caseworker will review your seasonal income fluctuations alongside future projections to consider the ebbs and flows that are natural in self-employed income. This will allow our team to create a customised payment plan to support your personal and business requirements.

How does a Self-Employed IVA impact my business?

The answer to this can vary depending on your industry, position, licence and regulatory requirements.

For most self-employed applicants such as a local plumber, the debt solution will not affect your ongoing business.

Continuing to trade is a fundamental principle of a self-employed IVA. The solution is specifically designed to help you resolve your finances, not to add further concern.

Managing Business Accounts

Managing your business bank account during an IVA remains under your control.

You’ll continue operating the account, managing cash flow, and making day-to-day financial decisions.

Supplier Relationships

Essentially, in a self-employed IVA, not all creditors are treated equally.

Although some creditors might be within your IVA, arrangements such as prioritising the full payment of essential suppliers to maintain key relationships can be made.

Therefore, a self-employed IVA can actually help stabilise key supplier relationships, allowing your business to run smoothly.

Licence and Certification Considerations

If your work requires professional licenses or certifications, further research may be necessary to determine whether an IVA could affect your continued membership.

Many professional bodies have become more lenient in understanding an IVA can be a responsible way to address financial problems.

To be sure, mention the accreditations you are querying if affected to our team, and they’ll help guide you to the correct information.

Is a Self-employed IVA right for me? Making the right decision

IVAs, whether employed or self-employed, can be a welcome relief for your financial affairs and put you on a sustainable path to being debt-free.

However, deciding whether a self-employed IVA is the right solution to consolidate your unsecured debts would require more consideration of your unique personal circumstances.

The term “self-employment” is too broad. For instance, an electrical contractor might find the restrictions less impactful than a strictly licensed solicitor does.

This would mean considering the advantages and disadvantages, which we’ll discuss in this section.

Advantages of a Self-Employed IVA

You can still be a company director

A considerable benefit of a self-employed IVA is that you can be appointed or continue to be a company director.

In some other debt solutions, this is not possible.

Debts into one affordable monthly payment

Business can often be a juggling act managing cash flow and payments to your various creditors. When added into this your personal debts, it can feel overwhelming.

An IVA can not only consolidate your unsecured debts into one payment, but it will also be an amount that takes into consideration your income and outgoings to ensure it is a sustainable monthly payment.

Creditor contact is handled by the Insolvency Practitioner

An IVA is a legally binding agreement that instructs your creditors to deal with your appointed IVA company instead of contacting you.

When payments are missed and defaults appear, having someone else manage creditor contact can be an extremely welcome relief and weight off the shoulders.

Write off a percentage of the debt owed

In most circumstances, your monthly payments in your agreed repayment schedule do not total the total debt owed.

Upon satisfying and completing your IVA, any outstanding amounts are written off.

The percentage of this amount can vary depending on your debt level and your repayment amount.

Potential challenges to consider

Your Personal Credit Rating Will Be Affected

As you will be defaulting on your agreed contractual repayments with your creditors, your credit file will be negatively impacted.

However, if you have already been missing payments, your credit rating will have been adversely affected.

It Will Be More Difficult To Obtain Credit

As your credit file has been negatively impacted, it will be harder to obtain credit for items such as store or credit cards.

However, as mentioned previously, this may already be the case if you have missed contractual repayments.

Making Other Company Directors Aware

If there are more than just yourself as a director, you must make the other directors aware of your intention to enter an IVA.

Within their Articles of Association, some companies state that directors cannot enter into any debt arrangement such as an IVA or Bankruptcy.

You Are On An Insolvency Register

As an IVA is a form of insolvency, you are placed on an insolvency register.

However, although a public register, people are unlikely to stumble across the site unless they are actively searching for it.

Alternative Debt Solutions

While an IVA can be highly advantageous for self-employed individuals, it is always wise to explore other options to ensure that one best suits one’s needs.

Debt Management Plan (DMP)

Unlike the formal IVA, a debt management plan (DMP) is an informal arrangement between you and the companies you owe money to.

Only covering your unsecured debt, a debt management plan can provide welcome relief to financial issues.

Read more about debt management plans here.

Debt Relief Order (DRO)

A debt relief order (DRO) is a legally binding agreement for people with no assets and under £50,000 of debt.

There are strict criteria you need to be eligible for, and you must adhere to certain restrictions.

Read more about debt relief orders here.

Bankruptcy

Bankruptcy is a legal process that eliminates your debt, but certain restrictions are imposed.

Any assets you possess may be sold to free funds to repay debts.

The IVA Application Journey

So, after careful consideration, if you have decided that a self-employed IVA is for you, then it is now time to apply for an IVA.

Initial Consultation

The first step is to speak to our friendly IVA assessment team. The debt advisor will assess your financial circumstances and ask questions to help us determine your eligibility for certain options.

Once you receive the options you are eligible for, you can now decide which is the best solution for your personal circumstances.

If you have decided that the IVA is the most appropriate solution for you, the advisor will ask for some documentation to help us present your case for approval.

Documentation Required

Documents that are required on a self-employed IVA can vary as each business is run in different ways.

The primary considerations are usually;

Proof of income (self-assessment tax return, company accounts)
Proof of debts ( we do this with you via a soft credit search)
Proof of expenditure in the form of bank statements
Mortgage statement or proof of tenancy

Putting forward your IVA proposal

Now we understand your financial circumstances and have documents to evidence this to your creditors. Our team will draft a proposal to put forward to your creditors seeking approval for an IVA.

You will have a chance to review and sign this before we do so, and it forms a legally binding agreement between you and your creditors.

Creditor Negotiations

Now your creditors are in receipt of your IVA proposal, a date is set for your meeting of creditors (MOC).

Although it is no longer an actual meeting, it is still a deadline for your creditors to vote in favour or against approving your IVA application.

For your self-employed IVA to be accepted, we need at least 75% of voting creditors to accept the proposal for it to be approved.

The IVA process from application to approval generally takes 21 to 28 days.

Self-Employed IVAs – Conclusion

A self-employed IVA can be an excellent solution for business owners who need help with their financial woes.

It allows you to combine all your unsecured debts into a single monthly payment that protects your personal assets whilst allowing your business to continue trading.

In some circumstances, certain business assets can also be protected to that are necessary for your ability to continue to trade.

However, there are some challenges to consider that you need to apply to your own circumstances to understand how they will affect your life moving forward.

Seeking Professional Advice

You should always seek professional debt advice before undertaking any debt solution.

Here at PennyPlan, we’ll provide you with all the information you need to decide on the best course of action.

Additionally, we also understand the mental health issues being in problem debt can cause. We’re proud to say we are the first debt solutions company in the UK to provide free mental well-being services to all our clients on IVAs.

This platform allows you to resolve the negatives causing or as a result of debt, enabling full rehabilitation from the financial woes and a more positive outlook moving forward.

Contact our team today at 0161 808 8811 to discuss your options for debt freedom today.

Self Employed IVA Help & Advice

Rated Excellent

How an IVA Works When You’re Self Employed

As seen on:

We Help With Most Debts!

Example Of An IVA

UNSECURED DEBTS

Your Monthly Repayments:

Find out for FREE what debt help is available to you

Reasons To Choose PennyPlan

Is a Self Employed IVA Right for You?

What Debts Can a Self Employed IVA Help With?

It may help with:

Self Employed Repayment Plan Options

IVA

Individual Voluntary Arrangement

DMP

Debt Management Plan

DRO

Debt Relief Order

Find Out For FREE What Debt Help Is Available To You

Get Help With Self Employed Debt Today

Do I QualifyFor an IVA?

Ready to Explore Your Self Employed IVA Options?

Can I Own a Business With an IVA?

Tackle Your Debt And Your Mental Health In One Place

Apply for our eligibility check

Speak to our debt specialists

Choose your debt solution

Do I QualifyFor an IVA?

What Our Customers Say About Us

Self Employed IVA FAQ’s

The Self-Employed IVA: Debt Relief for Business Owners

Self-Employed IVAs – What are they?

Differences between self-employed IVAs and standard IVAs

Business Continuity

Supporting Documentation

How does a Self-Employed IVA impact my business?

Managing Business Accounts

Supplier Relationships

Licence and Certification Considerations

Is a Self-employed IVA right for me? Making the right decision

Advantages of a Self-Employed IVA

You can still be a company director

Debts into one affordable monthly payment

Creditor contact is handled by the Insolvency Practitioner

Write off a percentage of the debt owed

Potential challenges to consider

Your Personal Credit Rating Will Be Affected

It Will Be More Difficult To Obtain Credit

Making Other Company Directors Aware

You Are On An Insolvency Register

Alternative Debt Solutions

Debt Management Plan (DMP)

Debt Relief Order (DRO)

Bankruptcy

The IVA Application Journey

Initial Consultation

Documentation Required

Putting forward your IVA proposal

Creditor Negotiations

Self-Employed IVAs – Conclusion

Seeking Professional Advice

Do I Qualify
For an IVA?

Do I Qualify
For an IVA?