MVL Liquidations for Companies in the UK

Answers to some commonly asked questions about us/MVLs

Fees/confidence in the service

Q How do I know I can trust you with my company’s money?

A See our credentials page for details of our professional qualifications and also the compulsory bond we have insuring your money whilst it’s under our control. You can also find testimonials here from previous clients.

Q How can you be so much cheaper than my local firm/who my accountant recommends?

A See our how so cheap page for an explanation of various reasons how we can afford to offer a full formal liquidation at such a low price.

Q Why are the disbursements so high?

A The disbursements comprise several adverts at different stages of the liquidation in the London/Edinburgh Gazette, and the specific bond (which, as stated above, protects your funds). Both the advertising and the bond are statutory requirements of any solvent liquidation.  The disbursements with our service will be comparable with other insolvency practices, however as our headline fee is so competitive, the disbursements look larger in comparison.

Q £995+this+that…what will it actually cost me in total?

A See our total cost page for full details and a couple of example costings.  In most cases it will be £1,500-1,800 all in (inc VAT), though a little higher if your bank balance is particularly large.

Do I qualify?

Q I’ve got some liabilities not yet settled/some assets which I’d like transferred out to the shareholder, can I still use your liquidation service?

A No, afraid not. This low price offering is only possible where the balance sheet is simplified right down to just a bank balance, nothing else. You’ll need to sort this with your accountant prior to getting us involved to liquidate.

Q I need some expert tax advice surrounding the liquidation, can you help?

A We have a good understanding of the generic tax rules which will apply in the majority of situations, and have written various articles on our site.  However, we will not get involved in your personal tax situation, so you’ll need to put any specific queries to your accountant.

Q We’ve got more than two shareholders, and/or corporate shareholders, can you help?

A Afraid not.  Having the above doesn’t stop you going through a liquidation, it does however prevent us being able to do it at this low price.  Please contact other liquidators who may be able to assist.

Time

Q How long before I get my money?

A Typically a first distribution of ~75% of the funds is paid about 1 month after you start the process.  The biggest delay tends to be the time it takes for your bank to transfer funds to us, which is beyond our control.  Following that, we need to wait for HMRC clearance.  If your affairs are extremely tidy this might be as early as 2 months after starting the process, though could be up to 6 months where additional returns are required/there are queries.

Q How much effort/time will it involve on my part?

A Very little.  You will need to visit a solicitor right at the start of the process.  Shortly after that, you’ll need to electronically sign various documents and from that point on there’s very little for you to do other than be patient as banks/HMRC don’t turn things around as quickly as you/we will.

Q You talk about some tight deadlines, what exactly are these?

A The tight time frame is from the date the Declaration of Solvency is signed to the date the resolutions to wind up the Company are passed (5 weeks), and in the advertising and filing requirements (14 days after the winding up resolutions).  So provided you don’t go on holiday between getting the solicitor to witness your Declaration of Solvency, or before returning the liquidation documents to us, this shouldn’t be a problem.  However, we recommend you’re happy you fully understand what’s involved and everything is ready before starting the process.

Why do it?

Q Why bother with a formal liquidation when I can get Companies House to strike the company off for £10?

A Yes, sometimes striking off is the best option, though if the bank balance is above £25k often it isn’t. See our tax benefits page for more information.

Q You talk lots about “ESC C16″, what on earth is it?

A It’s short for Extra Statutory Concession C16, a concession which HMRC used to be able to grant companies looking to close cheaply but still with favourable tax treatment.  It doesn’t exist anymore.

Q Who is this service suitable for?

A Anyone with a company they no longer want, with more than £25k in the bank. Contractors, freelancers and consultants make up most of our clients, but any small owner managed business could potentially benefit.

Q Aren’t liquidations bad because it means lots of businesses don’t get paid?

A We only assist with solvent liquidations, where the company has already paid its debts.  It’s a shame that liquidations are always seen as a bad thing, as that isn’t always the case.  See our article about the different types of liquidation.