Winding down a business through a Members' Voluntary Liquidation involves a lot of steps, paperwork and legal documentation. It can seem daunting and onerous, but with Interpath’s help, you’ll need to do very little and you’ll be in very capable hands. We’ll make sure your funds are distributed to you quickly and settle all of HMRC’s requirements.
How much does it cost?
Every business is different and will need our attention in different ways. Please get in touch with us to quickly get an idea of how much it would cost to wind up your business.
How quickly can we start the process?
Subject to obtaining the necessary clearances and agreeing a letter of engagement with the proposed Liquidator(s), a company can theoretically be placed into liquidation as soon as the necessary director and member signatories are available to execute the documentation. However, it is advisable to first carry out some form of pre-liquidation due diligence exercise to identify assets, liabilities and other issues that may be better addressed prior to placing the company into liquidation.
Will we need to file outstanding/future accounts once the company is placed into liquidation?
No, audited/other accounts are not required to be submitted going forwards, nor will accounts for outstanding periods need to be brought up to date if the company is placed into liquidation before the accounts filing deadline (usually nine months from the accounting period end). However, management accounts will normally be required to support the declaration of solvency and any outstanding tax returns.
What about outstanding/future confirmation statements?
Confirmation statements (which replaced annual returns) are not required to be submitted once a company enters liquidation, nor to be brought up to date for outstanding periods.
Is it a problem if the directors are based in multiple locations?
No, the board meeting can be held by any means permitted by the articles of association, including by telephone, and, provided the documents are identical, the directors can swear the declaration of solvency in counterpart.
Can the directors resign once the company is in liquidation?
If they so wish (Companies House generally accepts resignation notices filed during the liquidation), although, there is not normally any benefit in doing so.
Can the directors act as liquidators?
No, the liquidators must be licensed insolvency practitioners.
How quickly can the members expect to receive a distribution?
The liquidator can distribute assets to members after the creditors’ claim deadline has passed. In a straightforward liquidation scenario, this is could be as little as 8 weeks in England and Wales, and 20 weeks in Scotland.
What happens if a creditor asserts a claim in the liquidation?
The liquidator will assess the claim, consulting with the directors, members or other parties with knowledge of the company’s affairs if appropriate, before either agreeing and settling it or rejecting it, in whole or in part. A creditor whose claim is formally rejected has 21 days within which to challenge the decision in court.
Who is responsible for preparing and submitting pre and post liquidation tax returns?
For pre-liquidation periods, it is normally advisable for the company’s existing tax advisors to prepare any outstanding returns, albeit that the liquidator will be responsible for signing and submitting them once the company is in liquidation. In the event that there are capital disposals or there is taxable income during the liquidation, post-liquidation returns will be prepared and submitted by the liquidator.
When is the company formally dissolved and removed from the register?
Once the liquidation is fully wound up and the liquidator has provided their final account of the winding up to members, a copy of the final account is filed at Companies House by the liquidator within 14 days. The company will be formally dissolved and removed from the register approximately three months thereafter.
Can the company be restored following dissolution?
Although unlikely following an MVL process, it is possible for a company to be restored to the register by court order within six years of dissolution. A company restored following dissolution by MVL can be placed back into liquidation.
