Legally, liqudations can start whilst your company is still trading. However that typically means a lot of work for the liquidator. Therefore most of the fixed, low cost type operators insist on you doing a bunch of things before they get involved. This will include ceasing to trade, submitting all final tax returns, and tidying the balance sheet right down. This way their role is a pure liquidation one, with negligible accounting/tax input required, hence enabling them to keep costs lower.
Typically one of the tasks required would be for you to leave the company as an employee anyway, and also de-register the company as an employer. You'd still be a director, but not on the payroll, and P45 issued.
Any kind of company close down is going to take months rather than days/weeks, so realistically it will still be alive (even if not trading) when you start the permanent role...unless you take a huge break from working between. Hopefully that shouldn't cause you any issues.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Company close down (via MVL) and moving into permanent role"
Collapse
-
I am doing a MVL for a client and the liquidator has asked that all invoices are settled. Company can take 3-6 months to close even if simple striking off. Best to speak to your accountant about implications of being a director and not an an employee, but the company could issue a P45 if you need to cease being an employee (but get advice before doing so).
Leave a comment:
-
Company close down (via MVL) and moving into permanent role
Looking to close down ltd company via MVL to take up a permie role. I'll be starting the permanent role pretty much straight after my contract ends and given the timing there'll be at least one invoice outstanding.
1) From what I understand, the MVL process can't begin until all invoices are settled is that correct?
2) Can I "resign" as an employee but remain as just the director of my company whilst the remaining invoices are paid out?
Ideally I would like to cleanly close down the company before I start as a permanent but given the timing there will likely be an overlap so just trying to figure out how to best go through the transition. Due to visa conditions, once I start the permanent role then I can't be employed by anyone else including through my ltd company.
Any thoughts or helpful advice would be greatly appreciated
Thanks!
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: