Running a business while carrying debt can feel overwhelming. Whether you are a sole trader, company director, or self employed, there are real solutions that can help you take back control. You do not have to face this alone.
Business debt affects thousands of people across the UK every year. Cash flow problems, tax arrears, supplier invoices, and personal guarantees can quickly add up, leaving you unsure where to turn. The good news is that help is available, and many of the debt solutions designed for individuals also work for business owners.
The right approach depends on your business structure, how much you owe, and who the debts are owed to. Whether you need a business IVA, a Company Voluntary Arrangement, or simply some free business debt advice to understand your options, we are here to guide you through it with care and without judgement.
Your business structure makes a big difference to how debt is handled and what you are personally responsible for. Understanding this is the first step towards finding the right solution.
As a sole trader, there is no legal separation between you and your business. This means you are personally liable for every business debt, from supplier invoices to HMRC tax bills.
A limited company is a separate legal entity. In theory, the company's debts belong to the company, not to you personally. However, personal guarantees change this significantly.
Not sure about your liability?
Many company directors are surprised to learn they have personal liability through guarantees they signed when taking out loans, leases, or business credit cards. If you are unsure, our free advice service can help you review your situation and understand exactly where you stand.
A business IVA is a standard Individual Voluntary Arrangement that includes your business debts. It is one of the most popular solutions for sole traders and directors with personal liability.
An IVA is a legally binding agreement between you and your creditors. You make one affordable monthly payment for a typical period of 60 months. At the end, any remaining qualifying debt is written off. It protects you from legal action and stops creditors contacting you directly.
Free assessment
We review your debts, income, and expenses to see if an IVA is right for you.
Proposal prepared
An Insolvency Practitioner prepares a proposal showing what you can afford to pay.
Creditors vote
Your creditors vote on the proposal. If 75% by value agree, it becomes legally binding on all of them.
Monthly payments
You make one affordable payment each month for the agreed term, usually 60 months.
Debt written off
At the end of your IVA, remaining qualifying debt is written off and you are debt free.
A CVA is a formal insolvency procedure for limited companies. It allows your company to repay a proportion of its debts over time while continuing to trade.
A CVA is designed for limited companies that have a viable business but are struggling with debt. It is not available to sole traders, who would use an IVA instead.
Viable business
The company must be able to generate enough income to fund the CVA payments alongside normal trading costs.
Creditor support
75% of creditors by value must vote in favour for the CVA to be approved.
Insolvency Practitioner required
A licensed Insolvency Practitioner must prepare and supervise the CVA.
Typical duration
Most CVAs last between three and five years, with reduced monthly payments to creditors.
Tax debt is one of the most common reasons business owners seek help. HMRC can be an aggressive creditor, but there are ways to deal with tax arrears effectively.
Sole traders and company directors with unpaid self assessment tax can include this in an IVA or negotiate a Time to Pay arrangement directly with HMRC.
Unpaid VAT can be included in an IVA for sole traders or a CVA for limited companies. HMRC may also agree a payment plan if you contact them early.
If your company has fallen behind on PAYE or National Insurance, these debts can be addressed through a CVA. Directors may face personal liability in some cases.
Do not ignore HMRC letters
HMRC has stronger enforcement powers than most creditors. They can use distraint to seize business assets, issue county court judgments, and even petition for bankruptcy or winding up. If you are falling behind on tax payments, getting advice early gives you the best chance of finding a manageable solution before enforcement action begins.
You do not need to work this out on your own. Free business debt advice can help you understand your options, assess your liability, and find the best path forward for your situation. There is no cost and no obligation.
Our advisors have helped thousands of business owners, sole traders, and self employed people across the UK. We understand the unique pressures of running a business while dealing with debt, and we are here to support you every step of the way.
Tell us about your situation
We ask about your debts, business type, income, and what is causing you concern.
We explain your options
Based on your circumstances, we outline every solution available to you in plain English.
You decide what to do
There is no pressure. You choose whether to proceed with a solution or take time to think it over.
Free, confidential, no obligation
Common questions from business owners, sole traders, and company directors about debt solutions and what options are available.
Whether you are a sole trader struggling with tax debt, a company director facing personal guarantees, or simply unsure where to start, we can help. Our free business debt advice has helped thousands of people across the UK find a way forward. Your call is completely confidential.
Free advice. No pressure. Confidential service.
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