Reply to: Formal Liquidation Procedures

[vmaf]

So has anyone on here performed a voluntary liquidation on their limited company ? Would you recommend one for me ? Preferably in the London area and one that costs less than £3k. One liquidation company insited that I turn up to a room and swear an oath regarding my ability to pay off my liabilities , is this normal procedure?

Hi sbakoola, it was long time ago, but did you finally found a solicitor for this in London area?
Thanks!

[Maslins]

Does this need to be a British solicitor? Or will a solicitor or justice of the peace from NZ be acceptable?

It can be a solicitor in any country, though Companies House do require the original (ie you'd need to post rather than scan & email it).

The idea behind the Members Voluntary Liquidation potentially affecting your credit rating is quite worrying, I know that some of you are stating that you don't think it will have an impact but doesn't a MVL have to be advertised in the London Gazette, therefore can any of the Credit Ratings Agencies on there not just use that as a means to give you a negative score ? Will it even state in the London Gazette whether its a Voluntary or a Compulsory (bad) liquidation ?

All the London Gazette information is readily available to the public. Have a look and see what information goes on there.

[sbakoola]

The idea behind the Members Voluntary Liquidation potentially affecting your credit rating is quite worrying, I know that some of you are stating that you don't think it will have an impact but doesn't a MVL have to be advertised in the London Gazette, therefore can any of the Credit Ratings Agencies on there not just use that as a means to give you a negative score ? Will it even state in the London Gazette whether its a Voluntary or a Compulsory (bad) liquidation ?

[markpnz]

Yes. You'll need a solicitor to witness your signature on the Declaration of Solvency for any MVL.

I'm looking into this also and I wonder what this means for myself as I have moved overseas (now in NZ). Does this need to be a British solicitor? Or will a solicitor or justice of the peace from NZ be acceptable?

Thanks
Mark

[Maslins]

One liquidation company insited that I turn up to a room and swear an oath regarding my ability to pay off my liabilities , is this normal procedure?

Yes. You'll need a solicitor to witness your signature on the Declaration of Solvency for any MVL.

[sbakoola]

So has anyone on here performed a voluntary liquidation on their limited company ? Would you recommend one for me ? Preferably in the London area and one that costs less than £3k. One liquidation company insited that I turn up to a room and swear an oath regarding my ability to pay off my liabilities , is this normal procedure?

[Maslins]

Like any industry, prices vary from one company to the next.

Bear in mind in a lot of traditional liquidations, there are all kinds of hassles relating to selling off stock/fixed assets, chasing debtors, meeting with creditors etc.

Using a formal liquidation process for very simple, solvent companies isn't really something that was done before 1 March 2012...no reason for anyone to bother.

I think only a few insolvency practices have cottoned on to this potential new market, and how much simpler the typical cases should be (hence how they can afford to do it for a much lower fee).

Unless your bank balance is in excess of £250k, MVL Online's "all in" price (ie inc VAT & disbursements) will be below £2k. Even if there's >£250k, the only change is the bond price creeps up.

[ELBBUBKUNPS]

SJD Accountancy recommended one voluntary liquidation company that is charging around £5-6k .... you think this is too much ?

Nixons recommended liquidator also is charging silly amounts total all in near between £4.5-£5k. Ringing around though seems most of the more expensives ones charge around £3.5k all in, so looks like (but I may be wrong), the bigger accountancy are just jacking the prices up as with the accountancy charges to see how much they can get out (screw) out of you.

[PorkPie]

SJD Accountancy recommended one voluntary liquidation company that is charging around £5-6k .... you think this is too much ?

Yeah they did to me too - ridiculous price for what is required

[sbakoola]

SJD Accountancy recommended one voluntary liquidation company that is charging around £5-6k .... you think this is too much ?

[Maslins]

Thanks for this. Do you have any glowing references from satisfied customers?

Still very early days (bear in mind legislation only changed ~6 months ago, we only got our offering together ~3 months ago...combined with liquidations typically taking 3+ months to be seen right through).

So we've only recently had our first few starting the process. By the end of the year I'm confident there will be some glowing references.

The insolvency practitioner behind it (my colleague David Thorniley) has done hundreds of liquidations of all shapes and sizes, so we're not new to the process as a whole, but MVL Online is a new company catering specifically to the post ESC C16 market at this price.

[PorkPie]

Ha! Either you haven't read many of my recent posts or I've been far too subtle... I can recommend one, but I'm admittedly biased.

I'm 50% of MVL Online, quick google search will find. £995+VAT+disbursements, tho you/your accountant will need to simplify balance sheet down to just cash at bank (ie sell off any assets and pay any liabilities).

Ah ha... at last someone spotting the opportunity and doing something about it...

Thanks for this. Do you have any glowing references from satisfied customers?

[Maslins]

Isn't capital gains 18% upon winding up.

18% in basic rate band only, 28% above, unless entrepreneurs relief applies, in which case 10% throughout.

[centurian]

Isn't capital gains 18% upon winding up.

[Maslins]

Yeah would think it depends on the origin of the funds. In my case it's all "trading" activity as my business bank account gives me 0.0000000000001% interest

I don't suppose you happen to have the name of a decent, reliable and reasonable insolvency practitioner do you? 2.5k plus disbursements is the cheapest I've seen so far and this is still (IMHO) above the odds for what actually needs to be done to wind down a one man band contractorco.

Ha! Either you haven't read many of my recent posts or I've been far too subtle... I can recommend one, but I'm admittedly biased.

I'm 50% of MVL Online, quick google search will find. £995+VAT+disbursements, tho you/your accountant will need to simplify balance sheet down to just cash at bank (ie sell off any assets and pay any liabilities).