CVA Payment Calculator
CVA Payment Summary
Total Debts-
Total Payments Over Term-
IP Fees (est. 15%)-
Dividend to Creditors-
Debt Written Off-
CVA vs Other Insolvency Options
| Option | Business Continues? | Typical Cost | Duration |
|---|---|---|---|
| CVA | Yes | £5,000–£10,000 setup | 3–5 years |
| Administration | Possibly | £10,000–£50,000+ | 12 months |
| CVL (Liquidation) | No | £4,000–£8,000 | 12–36 months |
| Compulsory Liquidation | No | £1,987+ (petition) | 12–60 months |
CVA Key Facts
Typical Duration
3–5 years
Setup Cost
£5k–£10k
Creditor Approval
75%+ by value
IP Fees
10–20%
Success Rate
~30%
HMRC Binding
Yes
How to Use This Calculator
1
Enter total company debts
Include all creditors: trade, HMRC, bank, and other debts.
2
Enter affordable monthly payment
The amount the company can realistically pay each month after operating costs.
3
Select CVA duration
Typically 3-5 years. Longer durations reduce monthly payments but increase IP fees.
4
Add any lump sum contribution
If the company or directors can provide an upfront payment to boost the dividend.
5
Review creditor dividend
See the estimated pence-in-the-pound return to creditors and total debt written off.
Frequently Asked Questions
What is a CVA?
A Company Voluntary Arrangement is a legally binding agreement between a company and its creditors to repay a proportion of debts over a fixed period (typically 3-5 years). The company continues trading while making agreed monthly payments. A licensed insolvency practitioner (IP) supervises the arrangement. Creditors holding 75% or more of the debt by value must approve the proposal for it to proceed.
How much does a CVA cost?
Initial setup costs are typically £5,000-£10,000, covering the insolvency practitioner's proposal preparation, creditor meetings, and legal documentation. Ongoing supervisor fees are usually 10-20% of the payments made. So on a 5-year CVA with £3,000/month payments, the IP's total fees might be £27,000-£54,000 out of total payments of £180,000.
What percentage do creditors get in a CVA?
Creditors typically receive 20-60p in the pound in a CVA, depending on the company's ability to pay. This is usually more than they would receive in liquidation. HMRC, as a preferential creditor for certain tax debts, may receive a higher proportion. The dividend depends entirely on the company's financial position and the duration of the arrangement.
Can HMRC reject a CVA?
HMRC can vote against a CVA proposal at the creditor meeting, and if HMRC holds enough debt (more than 25% by value), it can block the arrangement. In practice, HMRC will often support a CVA if it offers a better return than liquidation and the company demonstrates genuine viability. HMRC has become more willing to support CVAs in recent years.
What happens if a CVA fails?
If the company fails to maintain CVA payments, the supervisor (IP) will terminate the arrangement. Outstanding debts become immediately payable in full, and creditors can resume enforcement action. The company will usually enter liquidation (CVL or compulsory). Approximately 70% of CVAs fail before completion, often due to overly optimistic projections.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.