IVA help in Hexham and Tynedale

An IVA works the same way in a farmhouse outside Hexham as in a city flat. But the details of a rural budget, from heating oil to long drives to work, need to be captured properly, and self-employed income from farming or tourism needs careful handling. This guide covers the rural side of IVAs.

Farming and agricultural debts: can an IVA help?

Many farms around Hexham are run by sole traders or partnerships, which means business debts can be personal debts. An IVA can include unsecured farming debts, such as supplier accounts, unsecured loans and credit cards used for the business, and it can allow you to keep farming while you repay what you can afford.

Land, machinery and livestock

Land and buildings are usually secured against a mortgage or agricultural loan, and that secured borrowing stays outside the IVA. Machinery and livestock you need to keep the business running are usually left alone, as long as they're reasonable for the size of the operation. Equipment on hire purchase or lease belongs to the finance company until it's paid off. Your proposal will need to set out clearly how each asset is treated.

Farming partnerships and tenancies

If you farm in a partnership, partnership debts and assets can be complicated, and the other partners may be affected. If you're a tenant farmer, check your tenancy agreement for any terms about insolvency. Get specialist advice before going ahead.

Support from farming charities

Charities such as the Farming Community Network and the Royal Agricultural Benevolent Institution offer free, confidential support to farming families facing financial and personal pressures. They're worth contacting alongside any debt advice.

Trade accounts with merchants and the mart

Farmers and smallholders often run accounts with agricultural merchants, vets, feed suppliers and contractors, and buy and sell stock through Hexham Mart. Trade accounts like these are unsecured debts and can usually be included in an IVA. If a supplier has retained ownership of goods until they're paid for, those goods may need to be returned or paid for separately. Bring recent statements from each supplier so the full picture is clear, and expect your proposal to explain how you'll keep buying the feed and supplies the farm needs to keep running.

Seasonal tourism income around Hexham

Visitors to Hadrian's Wall, Kielder and the Tyne Valley support a lot of jobs in and around Hexham, from cafés and pubs to holiday lets and guided tours. Much of this work is busier in summer and quieter in winter.

• Your IVA budget should be based on your income across the whole year, not just the peak season.
• If you run a holiday let or B&B, your contribution is based on profit after costs such as cleaning, repairs and booking fees.
• Planning for quiet months, for example by setting aside part of your summer income, helps keep payments on track.

Heating oil and off-grid energy costs

Many rural homes in Tynedale aren't connected to the gas network and rely on heating oil, LPG or solid fuel. These costs are often paid in large deliveries rather than monthly bills, and prices can change sharply. Spread the yearly cost across twelve months in your budget, using your actual spending over the last year. Some suppliers offer monthly payment plans, which can make budgeting easier.

Wood burners and solid fuel

If you heat your home partly with logs or coal, include what you actually spend over a year, including chimney sweeping. Creditors accept reasonable heating costs, and rural homes often need more fuel than the national averages used in budgeting guidelines suggest. Keeping receipts makes it easier to explain the figure if it's questioned.

Rural travel: when a car is non-negotiable

Outside Hexham itself, buses and trains are limited, and a car is often the only practical way to get to work, school or the shops. Creditors generally accept that a reliable vehicle is essential in rural areas. Fuel, insurance, servicing and any reasonable finance payments go into your budget. For farmers and tradespeople, a pick-up or van used for work is usually treated as a business cost.

Council tax in Hexham and the surrounding villages

Your council tax is collected by Northumberland County Council. Arrears can usually be included in an IVA, but your current bill must be paid. If you live in a holiday area and own a second home or holiday let, different council tax and business rates rules may apply, so check your position before your budget is finalised.

Talking to us from the Tyne Valley

Our team is based in Newcastle, about forty minutes down the A69 from Hexham, and handles everything by phone and email, so there's no need to make the trip. If you're self-employed or farming, have your latest accounts or tax return to hand when we speak. Send the form at the top of this page and choose a time that fits around your work. The enquiry is free and there's no obligation.

Free advice is also available from Citizens Advice Northumberland, Business Debtline for self-employed people and MoneyHelper. You can read more about which debts can be included in an IVA before you get in touch.

Rural and farming questions