Members Voluntary Liquidation IR35
The benefits of liquidating a contractor limited company using a Members Voluntary Liquidation IR35.
✔ Tax Efficient – Entrepreneurs Relief;
✔ Return surplus assets in a tax-efficient manner to shareholders;
✔ Reduce risk to directors;
✔ Save accounting and audit fees;
✔ Save management time in preparing statutory returns and compliance information;
✔ Improve transparency by simplifying complex and unwieldy structures thereby enhancing investor perception.
Fixed price solvent liquidation options available.
What do we do for you?
✔ Quick access to funds within one day with our bronze package;
✔ Provide you with a low-cost option to close your company and distribute funds;
✔ Licensed Insolvency Practitioners regulated by the Insolvency Practitioners Association;
✔ Nationwide coverage.
Your business could be liquidated in just weeks, leaving you free to plan a new future.
ACT TODAY FOR FREE CONFIDENTIAL ADVICE
WILL THE CONDUCT OF THE DIRECTORS BE INVESTIGATED?
No. There is no requirement for an investigation into the directors conduct with an MVL.
WHAT WILL HAPPEN IF IT IS DISCOVERED THAT THE COMPANY IS INSOLVENT?
The company will be required to be placed into a creditor’s voluntary liquidation (CVL).
Members Voluntary Liquidation IR35 – WHEN IS AN MVL APPROPRIATE?
An MVL is appropriate when a company is solvent and the members no longer wish for it to continue to exist. This could be for a number of reasons, highlighted above.
WILL MVL BE ADVERTISED?
An advertisement requesting the submission of creditors’ claims and noting the appointment of a liquidator will be advertised in the London Gazette.
WHAT ARE THE LIQUIDATOR’S DUTIES?
The liquidator’s primary responsibility is for the timely and efficient realisation of the company’s assets and the distribution of those realised funds to creditors and members in priority order.
DO I NEED TO GO TO ANY MEETINGS?
The directors are required to hold a board meeting to consider the liquidation and approve the declaration of solvency. They then pass a resolution to call an extraordinary general meeting of the members. At this meeting, resolutions are passed to place the company into liquidation and appoint a liquidator.
WHY CANT I JUST STRIKE THE COMPANY OFF?
A company is struck off when an application is made to Companies House for the company to be removed from the register and dissolved. This can only be done if the company has not been active for the three months prior. As from 1st March 2012, if a company undergoes an informal winding-up procedure, HMRC will allow distributions up to a maximum of £25,000 to be treated as capital. Should total distributions exceed £25,000 then distributions will be treated as dividend income. However, should the company enter into an MVL, the £25,000 limit will not apply and distributions may be treated as a capital receipt and have the tax advantage of being subject to capital gains tax rather than income tax.
WHAT WILL HAPPEN TO THE EMPLOYEES?
All employees will have to be made redundant either in advance of or at the date of the appointment of the liquidator. All outstanding monies owed to former employees will need to be paid either in advance of the liquidation or within twelve months of the liquidation, in accordance with the statutory declaration of solvency.
CAN THE ASSETS BE DISTRIBUTED BETWEEN THE MEMBERS WITHOUT BEING REALISED?”
The liquidator can distribute the physical assets of a company to the members. Known as a ’distribution in specie’. For example, the company may hold shares in another company. These could be distributed to the members at fair value, rather than the liquidator selling the shares and distributing the funds to the shareholders.
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