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. These should be cleared before our involvement.
- 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
- Start the liquidation. We’ll set up a client portal account for you and request you provide various bits of information.
- We’ll run obligatory anti money laundering checks on you, sanity check other details provided, then ask you to e-sign our standard Ts&Cs and pay liquidation costs.
- We’ll provide a Declaration of Solvency and ask you to withdraw all the company funds. In the short term this is deemed a loan to you as shareholder(s). Provided there are no creditor claims you will not be required to repay any of the funds to the company.
- You get the Declaration signed in front of solicitor, and post the sworn Declaration to us.
- Once all company funds are withdrawn, close the company bank account(s), and send us a closing bank statement showing the withdrawal of funds.
- We send documentation to get the liquidation underway to you to e-sign (following this, your role is largely finished).
- We submit £nil CT return for the brief dormant stub period between the last set done by your accountant.
- Following our appointment we declare a “distribution in specie” to distribute the lion’s share of the shareholder’s loan taken out immediately prior to our appointment.
- Companies House filing and statutory advertising of liquidator appointment, and for creditors to submit claims. Following this step there will be a significant wait (expect ~6 months).
- Subject to no suggestion of any claims, distribution in specie declared for the balance of shareholder’s loan amount.
- Final documents filed with Companies House.
- 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.
