Company Voluntary Arrangement – CVA

Company Voluntary Arrangement - Contact TaxGone

What Is a Company Voluntary Arrangement?

A Company Voluntary Arrangement is the preferred method for Directors of UK companies to resolve unsecured company debt problems within their limited company.

A Company Voluntary Arrangement is a legally binding financial agreement made between the company and its creditors. A Company Voluntary Arrangement can rectify company cash flow problems by reducing company debt.

This Government scheme is a formal insolvency procedure implemented according to Part 1 of the 1986 Insolvency Act and the Insolvency Rules 1986. It saves businesses and unlike any other insolvency rescue package, preserves the goodwill and keeps the directors in charge and the shareholders unchanged.

CVA Process Flow Chart

The Company Voluntary Arrangement allows a company to repay its outstanding unsecured debts. The repayment is calculated on a monthly affordable contribution over a period of time from between a few months and five years. A Company Voluntary Arrangement can also finish early by either the agreed contributions being paid early in one lump sum, maybe less a discount, or even a requested further dividend, through a variation to the scheme.

In the majority of cases the repayment paid is pence in the pound, i.e. a percentage of the debt is written off and obviously with no interest payable.

A simple example would be of a company that owes £100,000 being a mixture of HMRC debt and trade creditors. It would be anticipated that £40,000 would be written off with the remaining £60,000 to be repaid over a period of 60 months at the rate of £1,000 per month. This is subject to an affordability test on the company’s future forecasts  and projections.

This would clearly resolve any company tax problems and assist any company in financial trouble.

Statistically in most Company Voluntary Arrangement cases creditors, including HMRC, receive less than half of their outstanding debts, whereas in liquidation, they would often receive very little. This is one of the reasons why creditors are often willing to allow the company to continue trading through a Company Voluntary Arrangement.

View our testimonials and see the feedback we’ve had and give us a call today on: 01302 815846.


Share page

What's a CVA?

A Company Voluntary Arrangement (CVA) is a legally binding financial agreement.

more »

CVA Chart

Want to understand the CVA process with Tax Gone?

more »


Don't know the in's and out's off CVA, have a read over our handy FAQ.

more »

Magical Powers Of a CVA

A company Voluntary Arrangement really does have magical powers.

more »

CVA In Depth

The world of insolvency is wrapped in mystique. With this website you will be able to understand exactly what you should be paying for.

more »

Rescue Blog

HOME | BLOG | WEB POLICY | DISCLAIMER | Copyright 2015 TaxGone. TaxGone is a trading name for Tax Office DM Limited which has no connections to HMRC.