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Can You Get an IVA if You’re Self-Employed? UK Guide 2026

Written by Jess Gambo on . Posted in IVA.

If you’re self-employed and struggling with debt, you might be wondering whether an Individual Voluntary Arrangement (IVA) is available to you. The short answer is yes — self-employed individuals can absolutely get an IVA, but the process involves additional considerations that don’t apply to employees.

Can Self-Employed People Get IVAs?

Yes, self-employed individuals are eligible for IVAs. In fact, an IVA can be particularly beneficial for self-employed people because it provides protection from creditors whilst allowing you to continue operating your business.

However, the application process is more complex than for employees because:

  • Income verification is harder — you’ll need to provide detailed business accounts
  • Income can be irregular — monthly payments may need to be flexible
  • Business assets may be at risk — depending on your business structure
  • Professional reputation concerns — some industries have strict rules about insolvency

How Self-Employment Affects Your IVA Application

Income Documentation Required

Unlike employees who can simply provide payslips, self-employed applicants must submit:

  • Two to three years’ worth of business accounts
  • Recent profit and loss statements
  • Bank statements for both personal and business accounts
  • Tax returns and self-assessment forms
  • Details of any seasonal income variations

Flexible Payment Arrangements

IVA providers understand that self-employed income can fluctuate. Your IVA can include:

  • Variable payments based on monthly income
  • Seasonal adjustments for businesses with peak and quiet periods
  • Annual reviews to adjust payments based on business performance
  • Minimum payment guarantees to ensure the arrangement progresses

Business Assets and IVAs

The treatment of your business assets depends on your business structure:

Sole Trader

As a sole trader, your business assets may be included in the IVA because there’s no legal separation between you and your business. However, essential business equipment is usually protected if it’s necessary for generating income.

Limited Company

If you operate through a limited company, your business assets are generally separate from your personal IVA. However, if you’ve given personal guarantees for business debts, these will be included.

Partnership

Partnership assets may be affected, and you’ll need to consider how your IVA impacts your business partners.

Professional Considerations

Some professions have specific rules about IVAs:

  • Accountants and solicitors — may face professional restrictions
  • Financial advisers — FCA authorisation may be affected
  • Company directors — may need to resign from directorships
  • Insolvency practitioners — cannot practice whilst in an IVA

Always check with your professional body before proceeding with an IVA.

Advantages of IVAs for Self-Employed People

  • Business continuity — you can keep trading throughout the IVA
  • Creditor protection — stops debt collection action
  • Debt reduction — typically write off 60-80% of debts
  • Single monthly payment — easier to manage than multiple creditors
  • Professional reputation — less damaging than bankruptcy

Potential Drawbacks

  • Credit rating impact — affects your credit for 6+ years
  • Business credit — may impact ability to get business loans
  • Ongoing supervision — your finances will be monitored
  • Asset restrictions — you cannot sell significant assets without permission

The Application Process for Self-Employed Applicants

Step 1: Initial Assessment

An insolvency practitioner will review your financial situation, including both personal and business finances.

Step 2: Documentation

Gather all required financial documents, including business accounts and projections.

Step 3: Proposal Preparation

Your IP will prepare a detailed proposal explaining how your IVA will work, including provisions for irregular income.

Step 4: Creditor Approval

Creditors holding at least 75% of your debt must approve the IVA.

Step 5: Implementation

Once approved, you make regular payments whilst continuing to operate your business.

Alternatives to Consider

Before committing to an IVA, consider these alternatives:

  • Debt Management Plan (DMP) — more flexible but no legal protection
  • Business debt restructuring — if debts are primarily business-related
  • Time to Pay arrangements — for HMRC debts specifically
  • Informal arrangements — negotiating directly with creditors

Finding the Right IVA Provider

When choosing an IVA provider as a self-employed person, look for:

  • Experience with self-employed clients
  • Understanding of your industry
  • Flexible payment arrangements
  • Transparent fee structure
  • Good reviews from other self-employed clients

Conclusion

Self-employed individuals can definitely get IVAs, and they can be an excellent solution for managing overwhelming debt whilst protecting your business. The key is working with an experienced insolvency practitioner who understands the unique challenges of self-employment.

If you’re self-employed and considering an IVA, seek professional advice to understand how it would work in your specific situation. Every case is different, and what works for one self-employed person may not be suitable for another.

Ready to explore your options? Speak to a qualified debt adviser who can assess whether an IVA is right for your situation as a self-employed person.