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, ticking to confirm your understanding and providing the details requested.
- We’ll set up a client portal account for you and request you provide further information, agree to our standard Ts&Cs and pay our invoice.
- We’ll check your details then send out 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. If there are two shareholders the funds should be withdrawn by the shareholders in proportion to your respective shareholdings. Provided there are no creditor claims you will not be required to repay any of the funds to the company.
- You get ID certified, 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- Once all company funds are withdrawn, close the company bank account(s), and send us a closing bank statement showing the withdrawal of funds.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 approximately half 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.
- HMRC clearance requested for CT, PAYE, and VAT.
- Tax clearance received. Typically this is 6-8 months into the process, but is reliant on HMRC, and your affairs being tidy.
- Distribution in specie declared for the balance of the 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.
