MVL Liquidations for Companies in the UK

So, how does a typical members voluntary liquidation work?

Things to do before MVL Online® get involved

Cease trading.

Sell off any remaining fixed assets/stock (to yourself if applicable)

Prepare accounts, corporation tax and VAT returns at least up to the period your company ceased trading.

Submit final CT/VAT/PAYE returns.

Deregister for VAT.

Deregister as an employer.

Collect in any debts owed to the company.

Settle all company liabilities, including tax liabilities.

Director loans DO count as creditors/debtors of the company, if these exist they must be cleared or agreed with us beforehand.

Check you understand what’s involved and discuss with your accountant to ensure it’s best for your personal circumstances.

Ask us any questions about things you may be unclear of in the service/process.

Step by step process of a members voluntary liquidation

  1. Start the liquidation, ticking to confirm your understanding, then complete online information request.
  2. We’ll check your details then send out a Declaration of Solvency, letter of engagement and our invoice.
  3. You get ID certified and Declaration signed in front of solicitor. Post these to us, e-sign letter of engagement and pay invoice.
  4. Documentation to get the liquidation underway sent out by us to be e-signed by you (following this, your role is largely finished).
  5. Companies House filing and statutory advertising of liquidator appointment, and for creditors to submit claims.
  6. HMRC clearance requested for CT, PAYE, and VAT.
  7. Company funds transferred to liquidation estate account.  Typically this is ~1 month into the process, but is dependent on your bank.
  8. Approximately 75% paid out as an initial distribution to the shareholder(s).
  9. Tax clearance received. Typically this is 4-6 months into the process, but is of course reliant on HMRC, and your affairs being tidy.
  10. Remaining funds (less disbursements) paid out to your personal account(s).
  11. Final meetings held in liquidation (purely formal).
  12. Final documents filed with Companies House.
  13. Company dissolved and struck off Register.

Things to do after the liquidation is complete

Declare the distributions on your personal tax return(s) as appropriate.