Are You Ready To Liquidate? Sounds like a vulture eyeing up their next feast? Far from it. Are you ready to cross that bridge and take the plunge?
Liquidation is a fact of life. There are no two ways about it and from time to time certain businesses and individuals will need the services of an Insolvency Practitioner.
It is a new world out there now and everyone is having to adapt due to the Coronavirus, its restrictions and also sadly its tragic impact on lives and our way of life. People are retiring their businesses and the government is trying to help us along to prevent too great a crash in the new year.
Not all liquidations are about debt and doom. A Members Voluntary Liquidation (MVL) is a solvent liquidation. It is a tax efficient way for the owners of SMEs to extract their capital tied up in a company and perhaps look forward to a well earned retirement or start a new venture. Do you want to get hold of indemnity free funds tied up on your limited company?
A Liquidation can be solvent as well as insolvent. If you want to unlock your capital and to stop trading you can do so but you need to prepare to liquidate.
How Can I Prepare To Liquidate?
Are you ready to liquidate? If so, then you may need to take a number of steps to get ready. You can make life simpler and cheaper for yourself if you get yourself in shape to liquidate. You might as well because in the alternative even if you do not do it, is someone else will have to it for you and you will need to supply all the information – and pay for it!
If you really want to fly and get that liquidation off the ground quickly there are some things you can do to get your wings.
First Things First! The Liquidator
You cannot liquidate without a Liquidator! Yes, I know it would be nice if you could liquate your own company but the Insolvency Act 1986 says otherwise.
Here’s the bit where we come in and say, well we can help you! Contact Us and our CEO, Elliot Green and he will be happy to assist. Well, you need a liquidator so use us! We have twenty years experience and our CEO has liquidated literally hundreds of companies in that time.
Have a look at our MVL Packages. They are cheap, fair and they will get you there! If you are insolvent we have CVL Packages for you also.
The next step is all about getting all your ducks in a row to ensure that there are no hold ups to the closure processes.
Bank Account
Cease interest on your bank account. If you do not then you will earn interest. Sounds great? Well perhaps not. If you have say less than £100,000 to distribute and you want to get your hands on the money fast, then is a few extra days interest worth the costs of filing in yet another corporation tax return? It could also affect timescales on matters concerning HMRC clearances.
Tax Clearances and Indemnity Free Funds!
Tax clearance is usually the bit that holds up your receipt of all of your money – indemnity free. Until HMRC provides all the relevant clearances from the tax departments you might not have your funds indemnity free!
Having your hands on the funds from the company is great because they are in your possession and not someone else but is it really your money? Well, until you have HMRC clearance it is all very well the funds being in your bank account but if you are not indemnity free you might still have to pay it back if claims from HMRC for unpaid taxes sprout.
A liquidator will usually want an indemnity from you to be sure that you will pay the money back in such an event.
Tax and accounting compliance is fundamental to getting your liquidation concluded quickly. Close down your PAYE scheme, fill in your final VAT return and submit your corporation tax return up to the point of liquidation. Have your accountant get you accounts in good order so that you can swiftly have the up to date statement of affairs prepared.
Creditors
Contact all your suppliers and obtain confirmation that no funds are owing or pay them!
Indemnity Free Funds!
If you are an uncomplicated SME then if you follow these simple steps then you might be able to simply have the money in a bank account to handover to the liquidator who can hand it back to you very shortly thereafter.
Once you have done all of that and the liquidator has done his or her job with HMRC tax clearances, you can look forward to that well earned retirement or that new exciting project that you want to start with alacrity.
If you want to get indemnity free funds from your company in a tax efficient manner then Contact Us and we can liquidate for you at your convenience.
Have a look at our MVL Packages. They are cheap, fair and they will get you there! If you are insolvent we have CVL Packages for you also.
Disclaimer: Are Your Ready To Liquidate? is not legal advice and not to be relied upon as such. No liability is accepted for any reliance placed upon this information.
