What is Liquidation
Closing a company can happen for all sorts of reasons, and it can be either something you choose to do or something your creditors force upon you. Whether a creditor is pushing you into liquidation or you’ve decided to wrap things up yourself, our friendly team at Yes Liquidations is here to help guide you through the next steps. No matter if your company is in good shape or facing challenges, liquidation is a sensitive process and it’s important to have an experienced Insolvency Practitioner assist you. We have experts based nationwide to help assist with this.
Bounce Back Loan concerns?
Many directors are concerned about Liquidating with Bounce Back Loans given the recent media coverage of action against directors for misuse or fraudulent applications. We can discuss your situation in complete confidentiality and advise on if we think there is a possible concern and if there is how best to handle it.
Should you Liquidate?
Compulsory Liquidation
Sometimes, companies hit a rough patch and what used to be a thriving business can end up struggling to stay afloat. Creditors have the option to petition the court to force the company into liquidation. Often, HMRC ends up being a key creditor because of unpaid taxes like corporation tax and VAT, and they sometimes push for companies to be wound up but other creditors, like suppliers, could do the same if they haven’t been paid.
When a creditor applies for a Winding Up Petition against your company, it’s a big deal – they’re basically asking the court to close your business and appoint the Insolvency Service (a government department) as liquidator. If you get one of these petitions, it’s really important to seek immediate advice from a specialist. Your first step should be to chat with a licensed Insolvency Practitioner about your options. The good news is, you can book a free initial consultation with one of our experts whenever it suits you. Give us a call!
Creditors Voluntary Liquidation (CVL)
If your company is struggling and you’re thinking about closing it down due, the process you’re looking at is called a Creditors’ Voluntary Liquidation, or CVL for short. If you’ve realised your company is insolvent (either it has more debts than assets or it cannot afford to pay its debts when they fall due), it’s really important not to increase the debt or make special payments to certain creditors. Doing so could make things worse for all your creditors in the eyes of a liquidator and worst-case scenario could result in you being made personally liable for some of the debt. Rather than continuing to trade, it’s best to get in touch with a licensed Insolvency Practitioner right away. We’re experts in CVL’s and we’re here to help and advise you today.
Start your online liquidation today
If you’ve decided that liquidation is the best route for your limited company, you can kick things off easily by using our online portal. Starting the process is quick and straightforward, and you can do it whenever it’s convenient for you. Once you submit your information, a local Yes Liquidations insolvency practitioner will be right there with you, guiding you through each step. Click here to get started with your company’s liquidation online!
Members Voluntary Liquidation (MVL)
If you’re looking to wind up a solvent company, a Members’ Voluntary Liquidation, or MVL for short, is often the most tax-efficient way to do it. The common approach amongst Directors is to grant dividends to shareholders and then dissolve the company, whilst a perfectly legitimate way to proceed this is not tax efficient as dividends are counted as income for personal tax calculations. By utilising an MVL the assets can be distributed to shareholders as capital allowing more favourable tax rates saving significant sums of money for the shareholders. Our friendly advisers are here to chat through this option with you in more detail, especially since there’s been a recent increase in MVLs following the Government’s changes to Entrepreneurs’ Relief. Give us a call to find out more!