Maslins, did you ever reconsider your position on this?
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MVL - Overdrawn loan
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Originally posted by bcontractor View PostMaslins, did you ever reconsider your position on this?
Longer answer, if people are in a desperate rush to get their hands on the company cash, then there are options they can look at that other firms are prepared to accommodate. If the main priority is for tax purposes, then typically we can declare the distribution within a day or so of our appointment, then let the banks run their normal course, with payment following receipt of funds. Ie a bit like declaring a dividend to director loan account then paying it later, we'd be declaring the distribution then cash to follow. Plus side of this is you can get an early date of first distribution if there's a deadline from a tax perspective, but appreciate that's no use if you need the cash ASAP.
I do periodically have discussions with my business partner (the licensed insolvency practitioner behind MVL Online) about the possibility of one of the routes to get cash within a day or two of appointment, or indeed slightly before. Honest answer is at this point in time whilst we're coping fine with the case load we're getting, we're busier than ever, mainly due to the ongoing impact of IR35 changes. The reality of this is it in turn makes us less inclined to consider scenarios that don't go with our normal process. We anticipate a bit of a crescendo leading up to the March budget/tax year end.
Following the March budget, we'll either:
1) be killed off (if there's a significant change to CGT that makes us non-viable), with us just finishing off ongoing cases before likely closing the business, or
2) will reduce somewhat, simply as the time pressure of people wanting things done before budget/5 April 2021 passes. In this situation, if it's clear the business does still have a future, we'll likely look in more detail at options.Comment
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