Formal Liquidation Procedures
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    Default Formal Liquidation Procedures

    Does anyone have any experience or knowledge of the voluntary liquidation process?

    I've been told by my accountant that it is now too late to wind up a company using ESC C16 and to claim entrepreneur's relief on more than 25k of a company's assets. (It comes into effect in March but I've been told by the time the company is wound up it will be... April or May)

    So one option is to go for formal liquidation - but it sounds quite scary handing over control of your company to a liquidator not to mention forking out 5-7k for what amounts to bollocks really.

    Also, anyone have any idea how long this sort of thing would take?

    Thanks in advance

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    You claim ESC because you want you piles of money out cheaply. Why would you liquidate your company if it has piles of money it? Are they not two different processes for two different states of your company?

    I wasn't aware it was too late either. Get him to re-check or do some searching yourself?
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    You don't want to liquidate the company you want to wind up the company , very different things .

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    The ESC rules change on 01/03 so you may still have time to close using the current system, it depends how quickly everything can be done. I'd ask the accountant to get the ESC application sent off now, that way it may just come back in time to save you a lot of money on official winding up. You'll need to de-register for VAT and PAYE, and get the company bank account closed down asap too.

    It depends on whether your accountant has the time to wrap it all up quickly enough, and whether HMRC play ball and agree the ESC quickly enough. If you apply and it's not agreed in time then you've lost nothing. For a potential saving of 5,000 - 7,000 it's worth trying though IMO.

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    Thanks for the replies....

    I think it is too late for relief under ESC C16. For me, paying 5k is still worth it based on the tax savings under enterprener's relief.

    I imagine I am in unchartered territory here given the recent change in legislation.

    But I'll ask anyway - anybody know how to find a good liquidator? I could go down to the high street and look for shops being boarded up I guess...

    Anyway, why would one pay a liquidator 7k instead of 5k? Better stationary?

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    Quote Originally Posted by ddilling View Post
    Thanks for the replies....

    I think it is too late for relief under ESC C16. For me, paying 5k is still worth it based on the tax savings under enterprener's relief.

    I imagine I am in unchartered territory here given the recent change in legislation.

    But I'll ask anyway - anybody know how to find a good liquidator? I could go down to the high street and look for shops being boarded up I guess...

    Anyway, why would one pay a liquidator 7k instead of 5k? Better stationary?
    I applied for an ESC C16 concession on 06/12/2011 and got agreement on 16/01/2012, so there's still time in my view. Just.

    Your accountant should be able to recommend someone if you choose the formal route though.

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    I still think there is plenty of time to dissolve the company using ESC C16. It is the distrubution which needs to be made by 1 March in order to remain valid under ESC C16. In theory, you could apply for ESC C16 clearance but take the money before it comes through (I have never known it to be rejected under straightforward circumstances). I have just spoken to HMRC and they say that in these circumstances they would give retrospective clearance.

    If you are uncomfortable with this, we have an insolvency practioner here who would do a Members' Voluntary Liquidation for 2,500 + VAT plus third party disbursements in a straightforward case. Disbursements would typically be circa 500 but are a function of the level of the assets in the company.

    Please feel free to PM me if you want any further details.

    PUMA

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    A liquidator (insolvency practioner) can do the job for around the 2k mark as mentiond by Puma above. Anything about 3k is too much for a straightforward winding up of a Ltd Co.

    I'm in a similar position, probably looking to close down the Ltd later this year once my contract runs out. Like the OP, paying even 5k would be worth it but my accountant says it'll cost circa 2k.

    I have a question though: does a formal liquidation circumvent the kind of permission that is needed from HMRC for ESC16? i.e. is it a dead cert?

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    Last edited by ASB; 18th January 2012 at 11:57.

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    Default Insolvency Practioner contact details

    Quote Originally Posted by THEPUMA View Post
    we have an insolvency practioner here who would do a Members' Voluntary Liquidation for 2,500 + VAT plus third party disbursements in a straightforward case. Disbursements would typically be circa 500 but are a function of the level of the assets in the company.PUMA
    @PUMA, I am unable to PM you (not sure why), please could you send me the details of the insolvency practitioner you mentioned?

    TIA
    Steve

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