Self-employed and in debt: your options are different (and better)

Being self-employed and in debt presents different challenges — irregular income, tax bills, and fewer safety nets. But you also have options that employed people don't.

Unique challenges

HMRC debt: your key priority

If you owe HMRC money, don't ignore it. Call the Business Payment Support Service on **0300 200 3835**. They can offer:

HMRC would rather receive payment slowly than not at all.

Benefits you CAN claim

Self-employed people can claim:

Debt solutions that work for the self-employed

DMP (Debt Management Plan)

Works well because payments can flex with your income. Free through StepChange.

IVA (Individual Voluntary Arrangement)

You can continue trading while in an IVA. Payments can be adjusted each year based on income.

Bankruptcy

You can still work as a sole trader after bankruptcy (with some restrictions). This is a legitimate option if debts are unmanageable.

DRO (Debt Relief Order)

Only if your business income is very low (under £75/month disposable).

Getting help