Closing down company - liquidation - post ESC C16 changes

[PorkPie]

Hi

Has anyone actually been through liquidation yet since the changes to ESC C16? SJD are recommending their mates to do it at £5000 which I think is frankly ridiculous cost to shut down a 1 man band contractorco.

Any experiences, recommendations, costs etc?

Thanks

[Clare@InTouch]

It's a lot more expensive than the old ESC way due to the necessity of getting a liquidator involved (and the amount of work they have to do), but if you have over £50k (ish) in the company then the tax you save will still outweigh the costs of the formal closure.

[northernladuk]

Hi

Has anyone actually been through liquidation yet since the changes to ESC C16? SJD are recommending their mates to do it at £5000 which I think is frankly ridiculous cost to shut down a 1 man band contractorco.

Any experiences, recommendations, costs etc?

Thanks

Nixon Williams said they knew someone that could do it crica £3500K so not too dissimilar. They prices will come down once they start offering a standard service rather than follow a full process I am sure.

Accountants pricing seem to be getting a bashing on the forum recently.

[Nixon Williams]

Hi

Has anyone actually been through liquidation yet since the changes to ESC C16? SJD are recommending their mates to do it at £5000 which I think is frankly ridiculous cost to shut down a 1 man band contractorco.

Any experiences, recommendations, costs etc?

Thanks

As NLUK has mentioned, we have a link with an insolvency practitioner who will do a Members Voluntary Liquidation (MVL) for a fixed cost of £3500 - note that this fee is not paid to us, this is not a service we can do for our clients.

I do expect that this cost will fall over the coming months/years, when they realise the work involved.

I have seen some advertised for less than this so perhaps you need to shop around, there is no need to use the insolvency practitioner that you accountant suggests although it might make it easier for you.

Alan

[sbakoola]

Which comes first (if you opt to go for it) a) Qualifying for Entrepreneurs Relief or b) Voluntary Liquidation.

I'm asking because I would not want to pay £3,500-£5000 for Voluntary Liquidation only to find out that I don't qualify for entrepreneurs relief.

Its a big con the whole thing and its just a new way of getting money out of you for doing b*gger all.

[Waldorf]

Which comes first (if you opt to go for it) a) Qualifying for Entrepreneurs Relief or b) Voluntary Liquidation.

I'm asking because I would not want to pay £3,500-£5000 for Voluntary Liquidation only to find out that I don't qualify for entrepreneurs relief.

Its a big con the whole thing and its just a new way of getting money out of you for doing b*gger all.

Take a look at this factsheet http://www.nixonwilliams.com/images/...%20Company.pdf

It seems to qualify for entrepreneurs relief you need:

1. You must have held the shares in a trading company for at least 12 months up to the date trade ceased;
2. Hold at least 5% of the issued share capital of the trading company; and
3. The holder of the shares must have been an officer or an employee of the company throughout the
period concerned.

[Clare@InTouch]

Which comes first (if you opt to go for it) a) Qualifying for Entrepreneurs Relief or b) Voluntary Liquidation.

I'm asking because I would not want to pay £3,500-£5000 for Voluntary Liquidation only to find out that I don't qualify for entrepreneurs relief.

Its a big con the whole thing and its just a new way of getting money out of you for doing b*gger all.

ER is a personal relief, it's claimed on your tax return when you declare the capital gain on your shares. That can only happen after the company itself has been liquidated.

[Greg@CapitalCity]

Any experiences, recommendations, costs etc?

We are going through the first batch now. £5,000 seems a bit high - our clients are getting them done for £3,000 (includes disbursements and VAT). I have been dealing with the IP firm, and so far am impressed with their speed, knowledge, and provocativeness. PM me if you want the details - I can send you their website address.

[Olly]

... provocativeness...

tee heee

[Greg@CapitalCity]

Classic! I am afraid to say the IP I am dealing with is not provocative, but she is proactive.