The short answer
A Company Voluntary Arrangement (CVA) carries two fees: a nominee fee to draft and propose the arrangement, then ongoing supervisor fees over the term (commonly three to five years). The upfront cost is often lower than liquidation, but it is paid over time and only suits a viable business that can afford the agreed monthly contributions. Fees are set by the licensed insolvency practitioner and approved by creditors.
A CVA lets a viable but struggling company repay an agreed portion of its debts over a fixed period while continuing to trade. Because the cost is split between setting it up and running it, “how much does a CVA cost” has two answers. This guide breaks both down for 2026.
CVA cost at a glance
- Nominee fee To draft and propose the CVA
- Supervisor fees Ongoing, over the CVA term
- Typical term 3–5 years
- Set by A licensed insolvency practitioner
- Approved by 75% by value of voting creditors
- Best for A viable business that can keep trading
The two CVA fees
A CVA is not a single charge. The nominee fee covers reviewing the company, building a realistic proposal, and putting it to creditors at a decision procedure. Once approved, the IP becomes the supervisor and charges supervisor fees for administering the arrangement — collecting contributions, reporting to creditors, and distributing funds — for its whole term, usually three to five years.
How CVA fees are set and approved
Like other procedures, CVA fees are governed by the Insolvency Rules 2016 and must be disclosed in the proposal. Creditors vote on the proposal as a whole, including the fee basis; approval needs 75% by value of those voting (and not more than half of unconnected creditors against). Because the fees are drawn from the company’s contributions rather than an asset fire-sale, they are typically spread across the term rather than taken up front.
- Lower upfront cost — you are not paying to wind the company up and realise assets at once.
- Ongoing commitment — supervisor fees continue for the life of the arrangement.
- Paid from trading — the fees come out of the monthly contributions, so the business must remain affordable.
| Route | Cost shape | When paid |
|---|---|---|
| CVA | Nominee fee + supervisor fees | Spread over the 3–5 year term |
| CVL (small) | £4,000–£6,000 +VAT | Up front, from assets |
| Administration | £20,000+ +VAT | From assets, as an expense |
What the fees actually buy
It helps to see what the two fees pay for. The nominee fee covers genuine professional work: reviewing the company’s finances, testing whether the proposed contributions are realistic, drafting a proposal that meets the statutory content requirements, and convening the creditors’ and members’ decisions. The supervisor fee then pays for the ongoing discipline that makes a CVA credible — collecting and banking contributions, chasing arrears, reporting to creditors at least annually, varying the arrangement if circumstances change, and ultimately issuing a completion certificate. Because creditors are agreeing to write off part of what they are owed, they expect that supervision to be done properly, which is why the fees are built into the proposal and voted on alongside it.
Is a CVA worth the cost?
A CVA is worthwhile where the business can trade profitably going forward but is weighed down by historic debt. If the company is no longer viable, paying nominee and supervisor fees on an arrangement that later fails simply adds cost before an inevitable liquidation. A failed CVA usually leads straight into liquidation, so the upfront fee is wasted if the forecasts were never realistic. An IP will model both before recommending a route — see also how CVA, liquidation and administration compare.
Wondering whether a CVA stacks up for your company?
Only a licensed insolvency practitioner can model a CVA on your real figures and quote the nominee and supervisor fees. A confidential call is the first step.
Frequently asked questions
What is the nominee fee?
It is the fee charged by the IP to draft the CVA proposal and put it to creditors at the decision procedure. It is separate from the ongoing supervisor fees.
Are CVA fees cheaper than liquidation?
The upfront cost is often lower, but supervisor fees run for the whole term — usually three to five years — so the total cost is spread, not necessarily smaller.
How are the fees paid?
Out of the company’s monthly contributions into the arrangement, not from an upfront asset sale, which is why the business must remain affordable.
Who approves a CVA and its fees?
Creditors vote on the proposal; it needs 75% by value of those voting in favour, with the fee basis disclosed under the Insolvency Rules 2016.
Sources & further reading
- GOV.UK — Company Voluntary Arrangements
- Insolvency Act 1986 — Part I (company voluntary arrangements)
- The Insolvency (England and Wales) Rules 2016 — CVA procedure and remuneration
- The Insolvency Service — guidance for company directors
- ICAEW / IPA — licensed insolvency practitioner registers
This guide is general information, not formal insolvency advice. Your situation must be assessed by a licensed insolvency practitioner before you act.