Reply to: Acceptable time for preparing final accounts?

[Jeremy @ Silva Insolvency]

Just to clarify, my business year end is December. My accountant was able to move the end date forward 6 months, meaning end of June. Are you saying this was unnecessary? My accountant was adamant this needed to be done.

All that's required to place a company in MVL is for the directors to swear the company is solvent and for the members to pass a resolution putting it into liquidation and appointing a liquidator. Once appointed the liquidator is solely responsible for tidying up its affairs, whatever state they're in. (Clearly he won't agree a fee until s/he knows what's going to need doing.)

I can't say the last 6 months accounts weren't necessary though. There could have been another reason why it was desirable. [It could be something to do with meeting or evidencing eligibility for Business Asset Disposal Relief (Entrepreneur's Relief). There is a minimum trading period of 2 years to qualify which sometimes means people need to keep trading a bit longer. I'm not aware that there are any direct requirements relating to Co House filings.]

[heyya99]

Although accounts need to be prepared to support final CT returns, once a company is in MVL statutory accounts don't need to be filed at Companies House. I wouldn't therefore expect Co House rules on accounting periods to be holding up putting a company into liquidation.

If cessation accounts/CT returns are prepared pre-liquidation that does reduce the work for (and the fees of) the liquidator. (It doesn't have to be that way though. The liquidator can liaise with the accountants to file the returns etc.) heyya99's experience may be very typical but I don't think it's necessary to wait 6 months after ceasing trading before putting a company into liquidation (and 7 months before receiving any distribution).

Incidentally a period of 1 month between putting a company into liquidation and receiving a first dividend is quite normal. Once a liquidator is appointed s/he will advertise for claims against the company and creditors are given 3/4 weeks to submit their claims. Hence, once the 3/4 weeks has expired the liquidator can be in a more comfortable position to be able to distribute funds knowing that any creditors have had an opportunity to submit claims. [NB. There is scope to speed up this distribution process too but it is non-standard.]

Just to clarify, my business year end is December. My accountant was able to move the end date forward 6 months, meaning end of June. Are you saying this was unnecessary? My accountant was adamant this needed to be done.

[Jeremy @ Silva Insolvency]

I stopped trading on March 6th. My accountant didn't start the creating accounts until 6 months into my trading year, July 1st. This was because companies house need at least 6 month's worth of accounts. My accountant then handed the MVL process to the liquidator on September 8th. I'm due my first wad mid-October.

Although accounts need to be prepared to support final CT returns, once a company is in MVL statutory accounts don't need to be filed at Companies House. I wouldn't therefore expect Co House rules on accounting periods to be holding up putting a company into liquidation.

If cessation accounts/CT returns are prepared pre-liquidation that does reduce the work for (and the fees of) the liquidator. (It doesn't have to be that way though. The liquidator can liaise with the accountants to file the returns etc.) heyya99's experience may be very typical but I don't think it's necessary to wait 6 months after ceasing trading before putting a company into liquidation (and 7 months before receiving any distribution).

Incidentally a period of 1 month between putting a company into liquidation and receiving a first dividend is quite normal. Once a liquidator is appointed s/he will advertise for claims against the company and creditors are given 3/4 weeks to submit their claims. Hence, once the 3/4 weeks has expired the liquidator can be in a more comfortable position to be able to distribute funds knowing that any creditors have had an opportunity to submit claims. [NB. There is scope to speed up this distribution process too but it is non-standard.]

[heyya99]

I stopped trading on March 6th. My accountant didn't start the creating accounts until 6 months into my trading year, July 1st. This was because companies house need at least 6 month's worth of accounts. My accountant then handed the MVL process to the liquidator on September 8th. I'm due my first wad mid-October.

[velcro]

£95/mo

Packages Archive - Nixon Williams

Ah, I meant for closing down your Ltd. I'm already with NW and may have to do the same as you.

[MrButton]

Mine took around 3 months.

Basic one man PSC nothing interesting.

I’m sure it could be done in a matter of days if they wanted to.

[WTFH]

https://www.contractoruk.com/forums/...-question.html
https://www.contractoruk.com/forums/...cticioner.html
https://www.contractoruk.com/forums/...iquidator.html

[Syd]

There's a few threads on that already...

This is an incredibly unhelpful comment.

There is this thread but my question was about final accounts. The difference is that regular accounts have a 9 months deadline whereas at MVL you want them monies quickly. Another difference between old threads and now is COVID cascaded with IR35 (most banks already banned PSCs so accountants have an overhead in MVLs).

[ladymuck]

I wonder if anyone else can chime in how long did it take for them to close down their LTD?

There's a few threads on that already...

[Syd]

I wonder if anyone else can chime in how long did it take for them to close down their LTD?

[Syd]

£95/mo

Packages Archive - Nixon Williams

[velcro]

Does seem a long time, although I suspect they're fairly busy at the moment...

Out of interest, how much are NW charging?

[Syd]

Nixon Williams ?

[ladymuck]

How big is the accountancy firm? One man band or huge corporate?

[Syd]

This is a simple 1 man PSC that has been trading for three years. No assets or liabilities other than cash at bank.