Published: 10/05/2021 By Jane PriceHere are the typical stages when processing a Members Voluntary Liquidation or MVL but timings will vary depending upon the circumstances of the case.
|Day 1||On receipt of signed engagement letter, questionnaire and accounts||-|
|Finalise CT return for accounting period(s) to date of liquidation||Appropriate documentation prepared and circulated to directors for review.|
Confirmation that all pre-appointment tax returns are submitted or drafted in readiness for submission on date of liquidation.
|Day 7||Date of liquidation||This proposed date is changeable.|
|Swearing||Directors swear the declaration of solvency, with a solicitor in attendance.|
|General meeting of members||Held at short notice and requires all members to attend|
Votes are held on resolutions including
|Post liquidation bank account is opened||We would expect to have the new account number within 24-48 hours.|
|Day 10||1st interim distribution to shareholders when appropriate||We will require indemnities to be signed by Shareholders if we are to pay an early distribution (eg before it is established there are no creditors).|
Typically, this distribution will represent around 95% of the total expected net surplus.
|Request for creditors to claim||We will place statutory adverts in the London Gazette providing circa one month notice to claim.|
|thereafter||HMRC grants clearance to conclude the liquidation||Once all HMRC departments confirm they are not owed anything by the company. Clearance will be quicker if we can ensure that all pre-appointment tax returns are submitted including VAT de-registration, closure of PAYE scheme and all returns submitted plus tax paid (for VAT, CT and PAYE/NIC).|
|thereafter||Final distribution to members||The balance of funds held after the payment of all costs and any creditors’ claims.|
|thereafter||Final report issued to members||Formal report summarising the liquidation and detailing the Liquidator’s final receipts and payments account.|
|8 weeks later||Liquidator takes release||Copy of final report is filed at Companies House.|
|3 months later||Dissolution||Company is dissolved at Companies House.|
If you would like to know more about how we can help you with an MVL call us to discuss – our initial consultations are free with no obligations to proceed.
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