Enter liquidation and close down your company with the least cost and most tax efficent route.
Advantages Of Voluntarily Closing Your Company
- Gives directors a clean break
Allows you to step away from a potentially insolvent company with no further liability (unless debts have been personally guaranteed).
- Quick and cost-effective
Can be funded using company assets such as cash at bank, sale of assets, book debts etc.
- Your duties as a director
It shows creditors you have done the right thing by taking professional advice and can steer you away from the implications of wrongful trading.
- Claim redundancy payments
Employees and potentially directors can make a claim from the National Insurance Fund and receive payments for outstanding wages, holiday pay, pay in lieu of notice and redundancy.
Types of Company Liquidations
When one of these procedures has completed your company can be Struck-Off the Companies House register and your duties as a director will cease.
Creditors’ Voluntary Liquidation
A Creditors’ Voluntary Liquidation (CVL) is when an Insolvent Company’s directors voluntarily close the business by the appointment of a liquidator.
This process offers more control over being forced into compulsory liquidation.>
Redundancy Payments may be claimable from the National Insurance fund.
Members’ Voluntary Liquidation
Is your company solvent with assets over £25,000? Then a Members’ Voluntary Liquidation (MVL) is probably best.
This enables proceeds to be taken as capital gains tax rather than income tax – so it can be the overall most cost-efficient exit route.
Worried about Compulsory Liquidation or facing a Winding-Up Order?
You have several potential routes to avoid compulsory liquidation.
Whether you have chosen to close your company and wind-up its affairs or you have creditors threatening to take action against it, we can provide guidance and reassurance on the best way forward.