MVL and speed of capital distribution

[Maslins]

Out of curiosity, why not completely empty and then close the HSBC account before starting the liquidation process?

My hesitation with that is I think Aldermore only do savings accounts, which need to be linked to a current account. Possibly I'm wrong on that...but if you're unable to make payments directly from an Aldermore account (and not just to a current account you also control), then I think from a practical perspective it makes sense to retained a company current account.

If it were two "normal" current accounts, then yes, from our perspective close the account with the "slow" bank and put all funds into the "fast" bank.

[SuperLooper]

From our perspective, Aldermore are awesome, HSBC not so much. If you wanted to press ahead with us and get as much money as quick as possible, I'd suggest put 95%+ of the company's funds into Aldermore (leave at least £2k in HSBC, for MVLO fee/VAT and small buffer). Also ensure we have details of both bank accounts.

Out of curiosity, why not completely empty and then close the HSBC account before starting the liquidation process?

[Maslins]

I don't suppose you have any ball park info on the speed at which certain banks process your requests, namely Aldermore and HSBC.

From our perspective, Aldermore are awesome, HSBC not so much. If you wanted to press ahead with us and get as much money as quick as possible, I'd suggest put 95%+ of the company's funds into Aldermore (leave at least £2k in HSBC, for MVLO fee/VAT and small buffer). Also ensure we have details of both bank accounts.

It'll take us about a week after appointment to get an estate bank account set up and let various authorities know. Following that, we can write to the banks. Aldermore could get funds to us in as little as a couple of working days. HSBC will be more like a month.

[Ret]

Thanks for posting here and for your comprehensive reply over email @Maslins. I'm on the same page with regards to your sentiments around the proper way to do this. Although it is less than ideal (I'll need to cancel my flights, ~£900 down the drain) it looks like I'm going to have to have an extended break somewhere warm while this process takes place. ER here at 10% is somewhat more appealing than 30+% income tax on the other side.

I don't suppose you have any ball park info on the speed at which certain banks process your requests, namely Aldermore and HSBC.

[Maslins]

So you should. Can't be letting those Friday lunchtime porn star martinis go warm on the bar.

If only. I'm a "business adviser" for a Young Enterprise group. Am not remotely qualified for it, but they don't seem bothered

[northernladuk]

Was dashing out earlier hence my brief response.
!

So you should. Can't be letting those Friday lunchtime porn star martinis go warm on the bar.

[Maslins]

Was dashing out earlier hence my brief response.

I would reiterate...from a practical perspective, it's likely these early pay outs will be fine. I'm not trying to spread irrational fear. However, unless these liquidators can do something magic I'm not aware of, I imagine they will be instructing the director to instigate the payment themselves (rather than the liquidator do it), and it will be after the liquidator is legally appointed (as otherwise how can it be a distribution from a liquidation). We feel uncomfortable with this, as legally the director shouldn't have any control or access to the accounts following a liquidator appointment, it's just relying on the fact the bank will be slow to react to the legal changes. Some will say it's with the liquidator's approval so all fine and we're just being overcautious, but it still doesn't sit well for us.

Also, if I have got that wrong, apologies to any liquidators...and I'd be fascinated how you do do it, as it's a pain for us to have to chase some banks!

[northernladuk]

Pay out on day one? Never heard of that - doesn't sound right.

Indeed. I know pretty much squat about the MVL process but getting paid out on day one sounds completely wrong. I guess if it went smoothly it might work but should anything go wrong during the process it's gonna be a nightmare surely.

I'd imagine they've got disclaimers the length of your arm.

[craigy1874]

Pay out on day one? Never heard of that - doesn't sound right.

[Maslins]

Hello, yes thanks for your emails, will reply shortly to you in more detail there.

In practice I think the "pay out funds on day one" brigade are likely to be fine, but we don't feel comfortable with it. Reason being unless they know something very clever we don't, we don't feel it follows proper liquidation protocol.

[Dom at Fox Bartfield]

MVL

Sure, if you speak to Meeta at SFP Group or email [email protected] I'm sure she'll be able to assist.

[Ret]

Thanks Dom. Day one!? That would be incredible. This is a PSC company I ran so I would have thought it would be pretty straight forward - no money owed (except a little for CT, will be paid when closing accounts are complete).

I would consider moving after 80% has been allocated and paying the extra tax on the last remaining 20% if necessary.

That would be great if you could pass along those guys you have used that can offer this. I was planning to use MVLOnline which I believe @Maslins is affiliated with? Their website suggests payment of funds only after ~30days (once funds have been received from banks).

[Dom at Fox Bartfield]

MVL

Depending on the level of funds in the company, some providers can distribute 80% of funds on day one which may speed things up a little. The process is driven by guidelines on closure as well, which has specific timings for notices to be issued, etc.

Happy to provide the details of the guys we use if you wish? I'm sure @Maslins will be along shortly with his take as well.

[Ret]

I'm looking to emigrate having wound up trading activity on my company. The country I'm moving to taxes all foreign income when you become a tax resident (ie the day you step foot there). This creates a timing problem with the liquidation of my company and when capital is distributed - I was wanting to move ASAP but it sounds like it would be best to wait for the MVL to complete (I'm told 2-3 months). Do all MVL providers require funds to be transferred to their accounts first, or is it possible to have the funds transferred straight to the director initially? I suppose this creates a massive director loan and therefore wouldn't be a starter?

I suppose what I'm really asking is, is there anyway to have the process sped up so I would be deemed to have received the funds before emigrating? Any thoughts or suggestions around this predicament would be appreciated.

Cheers