So you want to close your limited company? What are the next steps?

As a contractor, one option you could consider is a members’ voluntary liquidation. Our dedicated ContractorMVLs service is specifically designed to meet the needs of contractors.

How does the ContractorMVL process work?

At the outset we collect information directly from directors or their accountant/adviser.  This avoids lots of requests back and forth and once we have agreed engagement terms with directors and dealt with our money laundering compliance process, we can get started.

OUr dedicated ContractorMVL team will draft all the paper work and ask for the director’s help in preparing the declaration of solvency (balance sheet). A date is then agreed for the proposed liquidation to take place and a board minute prepared which approves the declaration and proposes the resolutions for the shareholders to pass.

You do not need to hold a creditors’ meeting to put a company into Members Voluntary Liquidation. Instead, shareholders simply sign a written resolution agreeing to appoint a liquidator and wind the company up.

Once in liquidation, the liquidator (a member of our ContractorMVL team) is responsible for the company. They will take charge of the assets and bank account and agree any final creditor’s claims.

The ContractorMVL team will then make a payment to the shareholders based on the net assets left in the company. The liquidator may pay the majority of the money out leaving a small balance to pay when the MVL is closed.

MVLs normally last a short period of time and usually no more than 12 months.  The timing however is largely reliant on obtaining clearance from HM Revenue & Customs, allowing the liquidator to take steps to close the liquidation and dissolve the company thereafter. 

How can I find out more about ContractorMVLs?

If you are considering closing down your limited company and would like to find out if an MVL is the right route for you, a member of our dedicated ContractorMVLs team can help. Visit our ContractorMVL page for more information and try our MVL calculator to assess your potential tax saving.