We’ve written this page for people who are in business. It’s written for sole traders. It’s written for owner-managers of small firms. It applies if you’re a company director of a small business.

 

Being in business can be volatile. Your income may increase and decrease. You might use credit to grow your business. You might use credit to smooth over bad trading periods. There’s a greater risk of getting into debt trouble.

 

You can remain in business and tackle your debts. Find out (below) the special factors that apply to you.

 

Can You Use A Debt Management Plan?

 

Yes. We’ve helped sole traders and business owners to enter into debt management.

 

This is a flexible debt solution that might suit your needs. Payment can increase or decrease as your situation changes. You can exit a plan without notice or penalty. It could free up your time to focus more on your business.

 

Will Anyone Find Out?

 

There is no public register of debt management plans. If you enter personal insolvency, you’re added to a public register.

 

Your debt management provider will only need to contact your creditors.

 

Are HMRC Tax Debts Included?

 

Tax debts aren’t typically put in a debt management plan.

 

Money owed to HMRC is usually treated as a priority debt. It’s paid in priority to debts like credit cards or bank loans. The risks of falling behind on tax debts are higher. HMRC has a public duty to recover tax that is owed. It may resort to legal action sooner than consumer credit lenders.

 

A repayment agreement should get made with HMRC. Any money left over gets used to deal with non-priority debts.

 

Personal insolvency solutions do include tax debts. These solutions include IVAs, bankruptcy, and debt relief orders. In Scotland, they include trust deeds and sequestration. They might be more suitable if your tax debts are large.

 

Will My Personal Or Business Assets Get Sold?

 

Debt management plans don’t take assets into account. Any payment gets based upon surplus income rather than your assets.

 

Assets will get taken into account with personal insolvency. This could include personal or business assets. In some situations, they’ll be sold to repay debt.

 

Can I Remain A Company Director?

 

Entering a DMP does not stop you from serving as a company director.

 

You may be able to enter an IVA or trust deed. Your company has rules set out in its Articles of Association. They might stop insolvent persons serving as directors. This will not always be the case.

 

You cannot be a company director as a bankrupt. Becoming bankrupt can disrupt some businesses in other ways.

 

What Documentation Is Needed?

 

Your most recent tax return can be helpful. It helps to check your recent income and tax liability. It helps to split out personal and business costs. Bank statements are also helpful. They include evidence of income and bills.

 

Has your income changed since the last tax return? Be ready to discuss current and forecast future income (if it’s changing).

 

Different Types Of Debt Management Plans

 

Business operators can access several sources of debt management help.

 

You can use a commercial provider, like Bright Oak. We charge a fee to operate plans for our customers. The fee gets taken from your monthly payment.

 

Free-to-client providers also exist. You may wish to contact Business Debtline, for example. We understand some other free providers do not help the self-employed.

 

If you live in Scotland, read about the Debt Arrangement Scheme. This option provides legal protection from creditors. You could also look into the Business Debt Arrangement Scheme. This deals with business debts specifically.

 

Get Advice

 

For high quality debt advice, please contact us.

 

We’ve helped many self-employed and company director clients. Get in touch for expert help.

 

 

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Bright Oak, Cardiff House, Priority Business Park, Barry, CF63 2AW. Tel: 02920 492661.

We’ve written this page for people who are in business. It’s written for sole traders. It’s written for owner-managers of small firms. It applies if you’re a company director of a small business.

 

Being in business can be volatile. Your income may increase and decrease. You might use credit to grow your business. You might use credit to smooth over bad trading periods. There’s a greater risk of getting into debt trouble.

 

You can remain in business and tackle your debts. Find out (below) the special factors that apply to you.

 

Can You Use A Debt Management Plan?

 

Yes. We’ve helped sole traders and business owners to enter into debt management.

 

This is a flexible debt solution that might suit your needs. Payment can increase or decrease as your situation changes. You can exit a plan without notice or penalty. It could free up your time to focus more on your business.

 

Will Anyone Find Out?

 

There is no public register of debt management plans. If you enter personal insolvency, you’re added to a public register.

 

Your debt management provider will only need to contact your creditors.

 

Are HMRC Tax Debts Included?

 

Tax debts aren’t typically put in a debt management plan.

 

Money owed to HMRC is usually treated as a priority debt. It’s paid in priority to debts like credit cards or bank loans. The risks of falling behind on tax debts are higher. HMRC has a public duty to recover tax that is owed. It may resort to legal action sooner than consumer credit lenders.

 

A repayment agreement should get made with HMRC. Any money left over gets used to deal with non-priority debts.

 

Personal insolvency solutions do include tax debts. These solutions include IVAs, bankruptcy, and debt relief orders. In Scotland, they include trust deeds and sequestration. They might be more suitable if your tax debts are large.

 

Will My Personal Or Business Assets Get Sold?

 

Debt management plans don’t take assets into account. Any payment gets based upon surplus income rather than your assets.

 

Assets will get taken into account with personal insolvency. This could include personal or business assets. In some situations, they’ll be sold to repay debt.

 

Can I Remain A Company Director?

 

Entering a DMP does not stop you from serving as a company director.

 

You may be able to enter an IVA or trust deed. Your company has rules set out in its Articles of Association. They might stop insolvent persons serving as directors. This will not always be the case.

 

You cannot be a company director as a bankrupt. Becoming bankrupt can disrupt some businesses in other ways.

 

What Documentation Is Needed?

 

Your most recent tax return can be helpful. It helps to check your recent income and tax liability. It helps to split out personal and business costs. Bank statements are also helpful. They include evidence of income and bills.

 

Has your income changed since the last tax return? Be ready to discuss current and forecast future income (if it’s changing).

 

Different Types Of Debt Management Plans

 

Business operators can access several sources of debt management help.

 

You can use a commercial provider, like Bright Oak. We charge a fee to operate plans for our customers. The fee gets taken from your monthly payment.

 

Free-to-client providers also exist. You may wish to contact Business Debtline, for example. We understand some other free providers do not help the self-employed.

 

If you live in Scotland, read about the Debt Arrangement Scheme. This option provides legal protection from creditors. You could also look into the Business Debt Arrangement Scheme. This deals with business debts specifically.

 

Get Advice

 

For high quality debt advice, please contact us.

 

We’ve helped many self-employed and company director clients. Get in touch for expert help.

 

 

Debt Management Protocol logo link Brightoak Twitter

Call

02920 492661

0800 0437222

Debt Management Protocol logo link Brightoak Twitter

Debt Management Protocol logo link Brightoak Twitter