MVL Online

[Maslins]

Would these items have to be accounted as assets? What if they were sub £500 and put through the books as an expense. Is that spreadsheet stuff but the physical items still have a value regardless of how accounted for?

I wouldn't worry too much about those. Contrary to popular belief, HMRC aren't concerned about small amounts, so provided you didn't buy a top of the range Macbook Air a month before liquidation, then claim it's worth £nil so the company "gifts" it to the director, you'll be fine.

Looks like the credit rating question has been answered - my thoughts would be the same as the above.

[sbakoola]

Mine is done also, pm me if you want info on the experience.

It's been a great experience all in all, MVL kept me well informed, were patient and efficient, around 2 months for the entire procedure. Highly recommended.

I'm an IT developer and had lots of cash in the Limited so that's why I used MVL online.

[ELBBUBKUNPS]

I'm still looking to do this, been talking to some other contractors who have already done it but this was before mvlonline were around, the contractors I have spoken to told me once the capital is paid out there insolvency firms they used send letters to HMRC telling them that you recieved X amount of money, is that normal practice they said they had to be sent ? I just thought I bung it on my tax return and thats its ?

Also how do I check the London Gazette ? Do you just search the archieves on the website and as long as you see a company listed it means its been disolved ? I search the site by a company name and it returns it but from what I can see its just found the name overall list of companies not ones made insolvent ?

[Maslins]

I'm still looking to do this, been talking to some other contractors who have already done it but this was before mvlonline were around, the contractors I have spoken to told me once the capital is paid out there insolvency firms they used send letters to HMRC telling them that you recieved X amount of money, is that normal practice they said they were told legally they had to be sent ? I just thought I bung it on my tax return and thats its ?

Also how do I check the London Gazette ? Do you just search the archieves on the website and as long as you see a company listed it means its been disolved ? I search the site by a company name and it returns it but from what I can see its just found the name overall list of companies not ones made insolvent ?

I don't think there's any obligation for the liquidator to tell HMRC how much they're paying out. You don't submit dividend vouchers to HMRC, these aren't really any different. It is of course your responsibility to ensure they are declared correctly on your personal tax return.

You can see adverts in the London Gazette. A typical case has 4 adverts. What are you concerned about?

[ELBBUBKUNPS]

They were told its a requirement of insolvency governing body to send letters to HMRC SA office saying you were paid x on x date, the contractors were no happy.

[CrazyIndianZA]

Hi

Having read through several posts and a fair bit of googling, at the end of my current contract (March), I will be closing down my limited company.

MVL seems to be the most cost effective option. My company currently has three assets

a) Cash >25k
b) Various computer equipment with a 3k carrying value. Based on the earlier posts, I will do a combo of writing off and selling to myself.
c) A 10k investment/marketing in a crowdfunded videogame (Project Cars), currently under FSA investigation

Questions:
A) Given the three month no trading rule, will it be acceptable for move my money into a business savings account?
b) Not sure what to do with the Project Cars? Given the current uncertainty, would it be acceptable to write-down the value and then distribute as a dividend?

Thank you.

[Maslins]

Questions:
A) Given the three month no trading rule, will it be acceptable for move my money into a business savings account?
b) Not sure what to do with the Project Cars? Given the current uncertainty, would it be acceptable to write-down the value and then distribute as a dividend?

Hello,
A) unsure what you're referring to by 3 month no trading rule? You can move funds into a savings account, but be aware that means the company will continue to earn interest (hence have some income requiring declaring on a further CT return following cessation of trade).
B) up to you. MVL Online wouldn't be ok to pay out the investment itself as a distribution (other MVL providers may be). You could agree a valuation with your accountant now and personally buy it from the company (meaning more cash in the Co to be distributed as part of the liquidation...if you've got the cash personally) or distribute it now as a dividend based on the agreed value.

[CrazyIndianZA]

Hello,
A) unsure what you're referring to by 3 month no trading rule? You can move funds into a savings account, but be aware that means the company will continue to earn interest (hence have some income requiring declaring on a further CT return following cessation of trade).
B) up to you. MVL Online wouldn't be ok to pay out the investment itself as a distribution (other MVL providers may be). You could agree a valuation with your accountant now and personally buy it from the company (meaning more cash in the Co to be distributed as part of the liquidation...if you've got the cash personally) or distribute it now as a dividend based on the agreed value.

Hi,

Thank you for the response. I was indeed referring to the no 3 month trading rule. I guess I will need to balance out the interest gain.

[pianoman]

Has anyone actual got approval for entrepreneurs relief?

Hi All,

Has anyone actuall applied for the entrepreneurs relief after completing MVL (and got approval?)

Specifically I'm thinking about whether anyone has been knocked back on the trading company rule i.e. large cash assets.

Cheers

P

[Craig at Nixon Williams]

Entrepreneurs relief isn't something that you apply for, you simply need to state on the capital gains page of your tax return if ER applies to the gain. You wouldn't need prior approval from HMRC to claim this relief, but if they were to open an enquiry to your tax return then they may question your eligibility to it at that point.

In order for the gain to qualify you the following must have applied for a minimum period of 12 months immediately prior to disposal of the company:

• You must be an officer or employee of the company.
• You must have at least 5% of the issued share capital of the company with at least 5% of the voting rights.
• The company must be a trading company (as opposed to being classed as a closed investment holding company).

Hope this helps!
Craig