SJD Insolvency Services

If you decide to stop contracting or want to close your limited company and have funds remaining in your business bank account, there are a variety of ways to do close it down. The most common way is just to take any remaining profit as a dividend. However, depending on how much is profit is left you may be able to close it via a Members Voluntary Liquidation, which could be more tax efficient.

What is Member’s Voluntary Liquidation (MVL)?

An MVL is the process of liquidating your limited company so the company can distribute its remaining assets to its shareholders. Changes to the rules in 2012 now dictate that if you have more than £25,000 profit left in your company, you will be required to liquidate your company and enter into Members Voluntary Liquidation. Since the assets paid to shareholders count as capital gains and not income, this is considered the most tax efficient way of getting money from your company.

To do this, you will need to appoint an insolvency practitioner who will carry out the process.

What does our MVL service involve?

SJD Insolvency Services offers an all-inclusive, low cost fixed fee Members Voluntary Liquidation (MVL) package which includes every aspect of what is needed to close down your limited company.  Our Insolvency Services offers a plain English approach, keeping you fully informed at every stage of the company closure process.

Our MVL practitioner has over 15 years of experience in insolvency company closures and will work in tandem and directly with your accountant in order to get all the information that is required, so you never become bogged down with the process. We offer a hands-off approach throughout for the directors with almost every step of the process being done without the need for input. Their end aim is simple - to ensure you receive the funds in your bank account in the swiftest and most tax efficient way possible.

What happens during the MVL process?

The process can vary depending on your circumstances and the level of assets your company has but follows the same basic rules. We’ve outlined the process below to provide a rough insight:

  1. As the director of the limited company, you will need to appoint a liquidator who must be a licensed insolvency practitioner. The liquidator will file appointment documents at Companies House.
  2. The liquidator will publish in The London Gazette (or the Edinburgh Gazette) a statutory notice of his appointment and a notice of insolvency will be submitted to HMRC.
  3. The liquidator will complete post-liquidation VAT return and deregister. They will then write to the bank to close the account and receive company funds.
  4. After 1 month the liquidator will distribute funds to the shareholders, final report will be prepared to the shareholders and a meeting is held and lastly, a final corporation tax return will be submitted for the post-liquidation period.

 Find out more about SJD’s Insolvency Service

As a client of SJD your accountant will be able to help guide you through an MVL with our in-house insolvency service. For more information about our services, call us on 01442 275794 to speak to one of our experts.

Alternatively, just fill in the contact form below and we’ll be in touch soon. 

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SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Our Customer Promise. Respond to any question sent to your accountant or any dedicated department within 24 hours.  If we need more time, we will update you as soon as we can and we promise to keep you informed of the progress we are making in answering your question.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new business team on 01442 275789 or email: newbusiness@sjdaccountancy.com. Our new business team is open Monday to Thursday (8am to 8pm), Friday (8am to 7pm) and Saturday (10am to 4pm)

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.